A U.S. business investment plan gauge surged during October, the most recent suggestion is that the worst of the drag from the continued strong U.S. dollar and the deep spending cuts by energy companies were over.

The U.S. Commerce Department announced on Wednesday that orders of non-defense capital goods excluding aircraft, which is a closely watched metric for the plans of business spending, increased by 1.3% in October following an upwardly revised increase of 0.4% during September.

Economists had forecast that the core capital goods as they are called would rise just 0.4% after the previously reported dip of 0.1%.

The report comes following data earlier this month showing a strong increase in output of manufacturing in October. A factory survey showed an increase in the amount of new orders.

Manufacturing, which represents 12% of the overall economy, has been hit hard by the strength of the dollar and the spending cuts across the energy sector.

The U.S. dollar has seen an 18.1 % appreciation against a basket of currencies since June of 2014.

The pace of the dollar’s appreciation is gradually slowing down. Economists believe that the majority of spending cuts across the energy industry such as Schulberger is in response to the lower prices of crude, but have been implemented already.

However, manufacturing must still deal with the overhang of inventory, On Tuesday, data showed businesses were not as aggressive as thought initially in their efforts of reducing unsold merchandise, which led to an accumulation of inventories that economists have called unsustainable.

Shipments of the so-called core capital goods that are used in the calculation for equipment spending in the gross domestic product government measurement dropped 0.4% in October after a revised upwardly gain of 0.7% for September.

An 8% increase in spending on transportation equipment also contributed to the lifting of overall orders for durable goods, item that range from aircraft down to toaster that are made to last for a minimum of three years, which soared by 3% last month.

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