Orders for long-lasting factory goods increased in November, one of the many recent signs of improving demand this year for U.S. manufactured products.
Durable goods are products designed to last at least three years, such as cars or computers. According to the U.S. Commerce Department, orders for these goods increased 1.3% from the prior month to a seasonally adjusted $241.36 billion in November. The increase was led by orders for motor vehicles, military equipment, and airplanes.
Order numbers for October were revised to a 0.4% decrease from a previous estimate of a 0.8% drop. Through the beginning of 2017, demand for durable products was up 5.4%, compared to the same period a year earlier.
New orders and business investment in nondefense capital goods, decreased 0.1% in November. However, October’s reading was revised up to a 0.8% gain. The business investment measure increased 5.1% in the first 11 months of this year compared to the same period in 2016.
“The increase in this year’s capital spending is consistent with other measures showing confidence in the U.S. economy” said Keith Knutsson of Integrale Advisors.
Manufacturing has been an area of strength for the economy for many years. Orders for durable goods are up three of the past four months. Steady spending by domestic consumers and a thriving global economy have resulted in the best stretch of durable goods production growth in over a decade.
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