Tuesday, July 22nd13.4°C
22712
21900

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

22557


Recent Trending




Today's Market
S&P TSX15249.99-16.58
S&P CDNX1006.48-5.76
DJIA17051.73-48.45
Nasdaq4424.704-7.442
S&P 5001973.63-4.59
CDN Dollar0.9316+0.0003
Gold1313.40+4.2001
Oil104.75+0.16
Lumber327.80+1.50
Natural Gas3.805-0.044

 
Okanagan Companies
Pacific Safety0.20+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.150.00
Cantex0.055-0.005
Anavex Life Sciences0.348+0.008
Metalex Ventures0.065-0.005
Russel Metals34.99-0.16
Copper Mountain Mining2.69-0.01
Colorado Resources0.20-0.005
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.18-0.03

 



22439

FEATURED Property
1880751Fabulous home on a quiet street in Lower Mission of Kelowna.
$979,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...


Euro debt woes re-emerge

Big Picture Euro debt woes re-emerge Europe’s debt woes jumped back into the headlines this week trumping other economic, geopolitical and corporate developments. Word that one of Portugal&rsquo...

_








Member of BC Press Council


22707