Saturday, October 25th8.7°C
23711
23372

US factory orders up 1.8 per cent in November, led by gains in aircraft and machinery

WASHINGTON - U.S. factories orders climbed in November, led by a surge in aircraft demand. And businesses stepped up spending on machinery, computers and other long-lasting goods, a sign of investment that could fuel economic growth.

Factory orders rose 1.8 per cent in November, the Commerce Department said Monday. That follows a 0.5 per cent decrease in October.

Orders received by manufacturers totalled a seasonally adjusted $497.8 billion in November, the highest level on records dating to 1992. Orders have increased 2.5 per cent over the past 12 months.

The improvements could signal accelerating growth in 2014. Americans are buying more cars and homes, increasing demand for steel, furniture and other goods. That has led factories to hire more workers, generating additional economic momentum.

Still, overall economic growth remains modest by historical standards. And though factory orders have strengthened in recent months, their growth rate has slowed during the recovery from the 2008 financial crisis.

A 21.8 per cent jump in volatile aircraft orders drove the November gains. But orders rose in many other categories, a sign of strength at factories and confidence among companies.

Core capital goods, a proxy for business investment, rose 4.1 per cent. Economists watch this category because it excludes volatile orders for aircraft and defence equipment.

Demand also rose for construction machinery, computers, communications equipment, furniture and motor vehicle parts.

Most of the gains occurred in long-lasting goods, which increased 3.4 per cent in November. Orders for nondurable goods such as food products, clothing and paper rose a modest 0.3 per cent.

Separate economic reports indicate that manufacturing has remained strong and could drive further growth.

Factory activity in December remained near a 2 1/2-year high, according to the Institute for Supply Management. The trade group said last week that its index of manufacturing activity slipped to 57 in from 57.3 in November. That's still the second-highest reading since April 2011. And any reading above 50 signals growth.

Manufacturers have also bolstered hiring in recent months. Factories added 66,000 jobs from July through November, according to government's employment reports. The government releases its December employment report on Friday.

The Canadian Press


Read more Business News

22625


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23015

FEATURED Property
1982558#5 4141 Lakeshore Road
3 bedrooms 2 baths
$414,995
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22620