NEW orders received by US factories unexpectedly rose in November, and orders excluding transportation recorded their largest gain in eight months, providing more signs that its economic recovery is on a sustainable path.
The Commerce Department said on Tuesday orders for manufactured goods increased 0.7 per cent, after dropping a revised 0.7 per cent in October.
Manufacturing has been the star performer during the US’ recovery from its worst recession in 60 years, and continues to expand as factories appear to be ramping up activity to meet rising demand from consumers and businesses.
Analysts have forecast economic growth at an annual pace of between three per cent and 3.5 per cent in the fourth quarter, after a 2.6 per cent expansion in the third quarter.
US financial markets had little reaction to the data, with stocks little changed as optimism over the economic outlook was offset by a decline in consumer stocks.
Yesterday the US Institute for Supply Management said its index of national factory activity climbed to a seven-month high in December, hoisted by sturdy gains in new orders and production.
The Commerce Department report showed orders excluding transportation increased 2.4 per cent in November, the highest since March, after a 0.1 per cent gain the previous month.
Unfilled orders at US factories increased 0.6 per cent in November after rising 0.7 per cent the prior month.
Shipments increased 0.8 per cent, rising for a third consecutive month, while inventories gained 0.8 per cent after rising 1.1 per cent in October.
City A.M. Reporter