WASHINGTON, March 5 Reuters New orders for U.S.manufactured goods dropped more than expected in January, pulled down by a sharp decline in bookings for commercial aircraft, but demand for computers and electronic products accelerated.

Factory orders fell 3.6 after slipping 0.3 in December, the Commerce Department39;s Census Bureau said on Tuesday. Economists polled by Reuters had forecast orders declining 2.9. They decreased 1.6 yearonyear in January.

But there are signs that manufacturing, which accounts for 10.3 of the U.S. economy, is on the cusp of recovery after production eased in 2023 amid 525 basis points worth of interest rate hikes from the U.S. central bank since March 2022. A survey from the Institute for Supply Management last week showed manufacturers more upbeat about the outlook.

Commercial aircraft orders plunged 58.9 in January after rising 1.0 in December. Boeing reported on its website that it had received only three orders for commercial aircraft in January, sharply down from 371 in December.

The planemaker is under pressure after a cabin panel blew out on an Alaska Airlines jet midair in early January. The Federal Aviation Administration has barred Boeing from expanding production of its bestselling 737 MAX narrowbody planes to improve quality control.

Orders for motor vehicle bodies, parts and trailers rose 0.7. Overall transportation orders tumbled 16.2 after falling 0.6 in December. But orders for computers and electronic products shot up…