November Factory Orders Higher Than Expected

Washington, DC, Jan. 5, 2010--Factory orders rose 1.1% in November, faster than the 0.8% expected by economists.

This is the seventh increase in the past eight months.

The Commerce Department revised October's number higher by two-tenths of a percent to 0.8%.

Orders for durable goods increased 0.2% in November, unrevised from the initial estimate released late last month. Orders for nondurable goods rose 1.8%.

Core capital equipment orders rose 3.6% in November, revised up from 2.9% estimated a week ago, the government said.

Shipments of core capital equipment, a key component of investment in the gross domestic product calculations, rose 1.1% in November.

Leading indicators released since the New Year have shown that manufacturing is cranking up around the world.

Shipments of factory goods rose 1.0% in November, including a 0.2% rise in durable-goods shipments. Shipments have been higher in five of the past six months but are still down 17.0% in the past year.

Inventories rose 0.2% in November for the second straight monthly gain.

Excluding transportation goods, factory orders rose 1.9%. Excluding defense goods, orders rose 1.1%.