WASHINGTON — Orders to U.S. factories rebounded in September, helped by strength in autos, heavy machinery and military aircraft.

The fifth increase in six months bolstered hopes that a revival in manufacturing will help support an overall economic recovery. The worry is that if consumer spending falters in coming months, orders will slump again.

The Commerce Department said yesterday that orders rose 0.9 percent in September, slightly better than the 0.8 percent gain economists had expected. Demand increased for both durable goods, and nondurable goods such as chemicals and energy products.

BRITAIN BREAKING UP BIGGEST RETAIL BANKS

LONDON — The British government moved yesterday to break up the country's two biggest retail banks, imposing a major shakeup on the financial sector as it exacts payback for last year's massive state bailout at the height of the financial crisis.

The government also injected billions of pounds more of taxpayer funds into Royal Bank of Scotland PLC and Lloyds Group PLC, underscoring worries the banking sector is not out of trouble yet.

The change effectively pumps almost $65 billion more into the two banks and could result in the creation of as many as three new commercial banks.

MADOFF'S AUDITOR PLEADS GUILTY

NEW YORK — Bernard Madoff's longtime auditor pleaded guilty to securities fraud charges yesterday, saying he failed to do his job to verify the disgraced money manager's financial records but did not know Madoff was running history's biggest Ponzi scheme.

David Friehling, 49, apologized to the thousands of victims who lost billions of dollars. The plea was part of a cooperation deal with prosecutors.

He said if he had known that investor money was not properly invested, he would not have poured his family's savings, including the college funds for three children ages 17, 20 and 24, into Madoff's investment business.

JOHNSON & JOHNSON TO CUT 8,000 JOBS

NEW YORK — Johnson & Johnson said it will cut up to about 8,000 jobs and streamline its operations to cut costs as it braces for changes in the health care industry.

The New Brunswick, N.J., company said the cuts will affect 6 to 7 percent of its global workforce of roughly 118,700 workers. The restructuring is one of Johnson & Johnson's biggest ever and will prompt a restructuring charge of up to $1.3 billion pretax in the fourth quarter.

Johnson & Johnson plans to simplify its business structure and projects that it will save between $800 million and $900 million next year and $1.4 billion and $1.7 billion annually after '11.