U.S. orders for costly manufactured goods shot up past expectations in April, driven by the biggest rise in auto demand in more than three

years, the government said May 23 in a report which also showed a pickup in crucial business spending.

Demand for motor vehicles and parts led the way with a surge of 12.0 percent, the largest increase since a 17.2 percent rise in August 1998, according to Reuters.

Most North American car plants are running on overtime because of high demand due to attractive financing incentives, which make the most of low interest rates, and also because dealerships are building up their inventories of cars and trucks ahead of the summer selling season. General Motors said it will add a shift of workers at plants in Ontario and Michigan to keep up with the demand.

The report lends weight to Federal Reserve Chairman Alan Greenspan's assertion in April that there were signs of a revival in business spending.

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