US durable goods orders rise 3.5% in November

Tuesday 24 December 2013 13.38
Durable goods range from toasters to aircraft
Durable goods range from toasters to aircraft

US durable goods orders rose 3.5% last month as demand increased for a range of goods from aircraft to machinery and computers and electronic products.

The increase, which outpaced economists' expectations for a 2%, more than reversed October's revised 0.7% drop. 

Excluding transportation, orders rose 1.2%, the largest increase since May.

According to figures from the US’s Commerce Department, non-defence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, surged 4.5%, breaking two straight months of declines.

It was the largest increase since January.

Economists had expected orders for these so-called core capital goods to increase 0.7% in November after a 0.7% fall in October.

The report suggested strength in manufacturing and was further evidence of a firming economic growth outlook.

The gain in orders is in line with other data such as industrial production and a survey of national factories that have offered a fairly bullish assessment of the sector.

Last month, durable goods orders rose almost across the board, with notable gains in transportation.

Transportation equipment orders increased 8.4% after falling 3.5%. 

Civilian aircraft orders jumped 21.8% and orders for motor vehicles recorded their largest increase since February.

Boeing received orders for 110 aircraft in November, up from 79 aircraft the prior month, according to information posted on the aircraft company's website.

Outside transportation there were gains in orders for computers and electronic products, machinery and fabricated metal products, among others.