US factory orders rebound in November

WASHINGTON (Reuters) – New orders for U.S.-made goods increased more than expected in November amid a surge in demand for civilian aircraft, government data showed on Friday

Factory orders rose 2.6% after declining by 3.4% in October, the Commerce Department’s Census Bureau said. Economists polled by Reuters had forecast orders would rebound by 2.1%. Orders climbed 0.7% on a year-on-year basis in November.

Manufacturing, which accounts for 10.3% of the economy, is being constrained by high interest rates.

Civilian aircraft orders soared 80.1% after declining by 43.9% in October, while orders for motor vehicles, parts and trailers were unchanged. There were also increases in orders for primary metals, machinery, computers and electronic products as well as electrical equipment, appliances and components.

Shipments of manufactured goods rose 0.5%. Manufactured goods inventories edged up 0.1%, while unfilled orders jumped 1.3%, reflecting the surge in aircraft orders.

The government also reported that orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, increased 0.8% as estimated last month.

Shipments of these so-called core capital goods fell 0.2% instead of dipping 0.1% as previously reported. Business spending on equipment contracted in the third quarter.

Source link