(Source: Associated Press/AP Online)

WASHINGTON - Orders to factories for big-ticket durable goods likely grew in September after an August slump as strong demand for autos offset continuing weakness in aircraft.
A rebound in orders for items expected to last at least three years like autos, computers and steel would be an encouraging sign of a rebound in the manufacturing sector, which has helped lead the early stages of the fledgling economic recovery. But many economists worry that demand could falter in the months ahead as various government stimulus programs wind down.
Economists surveyed by Thomson Reuters expect orders rose 1 percent in September following a 2.6 percent decline in August. Orders excluding transportation likely grew 0.7 percent, after a 0.3 percent decline in August.
The Commerce Department is slated to release the report Wednesday at 8:30 a.m. EDT.
The jump in orders was expected to reflect an effort by auto dealers to restock after an August sales surge powered by the government's Cash for Clunkers program, which offered incentives for buyers to trade in their old cars for more fuel efficient models.
However, that program ended in August. Economists said growth could sag as consumers contend with unemployment at a 26-year high of 9.8 percent that's expected to keep rising until next spring.
The overall economy, as measured by the gross domestic product, likely grew at an annual rate of 3.3 percent in the July-September quarter after contracting for a record four straight quarters. The third-quarter GDP report is due out Thursday.
If businesses are encouraged by the early signs of recovery, they could start hiring back the millions of workers who were laid off during the recession, providing an important boost to consumer spending. But many employers appear reluctant to hire back those workers until there are more signs of a rebound.
Caterpillar Inc. announced Monday that about 2,500 laid-off workers will be permanently cut from the company. They were among more than 22,000 employees laid off earlier this year as the world's largest maker of mining and construction equipment scaled back production due to weaker demand. Caterpillar last week said it was seeing encouraging signs that a recovery was under way, even as it reported a 53 percent decline in third-quarter earnings.
Also this month, Texas Instruments Inc. reported third-quarter profits and sales that were slightly above expectations. The company also said its largest division, which makes analog chips used in digital music players and other gadgets, enjoyed 20 percent growth for the second straight quarter.
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