WASHINGTON, Jan 29 (Reuters) – New orders for U.S. factory goods rebounded in November as demand for commercial aircraft surged, though growth in business spending on equipment likely moderated in the fourth quarter.
Factory orders increased 2.7% after an upwardly revised 1.2% decline in October, the Commerce Department’s Census Bureau said on Thursday. Economists polled by Reuters had forecast factory orders increasing 1.6% after a previously reported 1.3% drop in October. Orders advanced 3.4% on a year-on-year basis in November.
The report was delayed by the 43-day shutdown of the federal government. President Donald Trump’s sweeping import tariffs have depressed a large segment of manufacturing, which accounts for 10.1% of the economy, though a few industries have received a lift from the protection against foreign competition.
An artificial intelligence boom has supported the technology sector. Economists are cautiously optimistic of a broad improvement in manufacturing this year as the drag from import duties eases and tax legislation, which made bonus depreciation permanent among other perks, takes effect.
Commercial aircraft orders soared 97.6% in November. There were solid increases in orders for electrical equipment, appliances and components as well as fabricated metal products. Machinery orders rose 0.3% while those for computers and electronic products were unchanged.
The Census Bureau also reported that orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, increased 0.4% in November instead of 0.7% as was initially reported earlier this week.
Shipments of these so-called core capital goods rose 0.2% rather than 0.4% as reported this week. Business investment in equipment expanded at a 5.2% rate in the third quarter, contributing to the fastest economic growth pace in three years.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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