Factory orders in the United States factory rose by 1.2 per cent, the Commerce Department said today.
Strong demand for new commercial aircraft is believed to have pushed business up by 1.2 per cent. The November increase followed an upwardly revised 0.9 per cent orders gain in October that previously was reported as a 0.5 per cent rise and outstripped Wall Street economists' forecasts for a smaller 0.8 per cent pickup.
The figures have added to other signs that the nation's industrial sector wrapped up 2004 on a healthy note, including the Institute for Supply Management's report yesterday that showed its index of manufacturing activity moved higher in December.
The Commerce Department said transportation orders - the largest single component in factory business - posted an 8.8 per cent increase in November following a 0.1 per cent October gain. It was the strongest rise in transportation orders since an 11 per cent gain in February.
Civilian aircraft and parts orders were up 64.2 per cent after a slim 5 per cent October advance. Excluding transportation, factory orders were flat in November after rising 1 per cent in October. Shipments of finished goods, a gauge of how busy factories are at the moment, grew by 0.4 per cent to $379.03 billion in November on top of a stronger 1.6 percent increase in October.