Orders to U.S. factories increase in June, led by demand for aircraft, industrial machinery and computers and electronics.

The Commerce Department reports that orders rose a seasonally adjusted 1.1 percent compared to the month prior. Factory orders had fallen 0.6 percent in May after three straight months of gains.

An 8.4 percent jump in demand for commercial aircraft fueled the latest gains. But there were additional increases outside this volatile category that point to businesses investing with the expectation of economic growth.

Orders for machinery rose 2.9 percent. Iron and steel mills had a 1.7 percent increase in demand, while orders for computers and electronic products were up 2.9 percent.

Excluding military hardware, factory orders rose 1 percent in June from May.

Over the past year, factory orders were up 2.5 percent.