New orders for U.S.-made capital goods rebounded more than expected in March, suggesting that business spending on equipment ended the first quarter with strong momentum.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 1.0% last month, the Commerce Department said on Tuesday. These so-called core capital goods orders fell 0.3% in February.

Economists polled by Reuters had forecast core capital goods orders rebounding 0.5%.