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More signs of US manufacturing strength

US economy - Manufacturing leading recovery
US economy - Manufacturing leading recovery

Official figures show that orders for US manufactured goods rose unexpectedly in November, in the latest sign of strength in a key sector leading the country's economic recovery.

The Commerce Department said factory orders rose 0.7% after a decline in October. Most analysts expected them to fall 0.3%.

The department said durable goods orders fell a revised 0.3% in November, a much better performance than its previous estimate of a 1.3% drop.

That decline in orders for durable goods - big-ticket items such as computers and cars - had been due mainly to a more than 50% plunge in aircraft orders.

Excluding the transport sector, which can be volatile, factory orders rose 2.4% in November, the strongest gain since March.

Over the first 11 months of 2010, factory orders were up a robust 12.3% from the same period a year ago.

The manufacturing sector has been one of the main engines driving the world's largest economy since the worst recession in decades ended in June 2009.

The Institute of Supply Management said on Monday that US manufacturing activity rose for the 17th straight month in December, underpinned by strong new orders and production.