Orders to U.S. Factories Rise the Most in Four Months as Recovery Quickens [View all]
By Bob Willis
Orders to American factories rose in November by the most in four months, showing gains in manufacturing will help the economy grow.
Bookings for factory goods (TMNOCHNG) rose 1.8 percent after a revised 0.2 percent drop the prior month, data from the Commerce Department showed today in Washington. Demand for aircraft, autos and metals compensated for a drop in computers and electronics.
Improving consumer spending combined with lean inventories indicate production (IPMGCHNG) will continue to increase, bolstering economic growth in early 2012. Slowing demand for capital goods like computers is a sign business investment will cool this year, reflecting concern over a slowdown in global growth and a less advantageous government tax credit.
“Manufacturing is holding up fairly well,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “Business investment has been very strong during this recovery, so some softening isn’t surprising.”