US factory orders up on planes, business spending

11:38 AM, Jan 6, 2014   |    comments
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WASHINGTON (AP) - U.S. factories orders climbed in November, led by a surge in aircraft demand. And businesses stepped up spending on machinery, computers and other long-lasting goods that signal investment.

The Commerce Department says factory orders rose 1.8 percent in November. That follows a 0.5 percent decrease in October. The index now stands at its highest level on records dating back to 1992.

A 21.8 percent jump in volatile aircraft orders drove the gains. But orders rose in many other categories, a sign of continued strength at factories and growing confidence among companies.

Core capital goods, which are a proxy for business investment, increased 1 percent. Economists watch this category closely because it excludes volatile orders for aircraft and defense equipment.

Demand increased for construction machinery, computers, furniture and motor vehicle parts.

(Copyright 2014 The Associated Press. All rights reserved.)

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