US factory orders rise 1.8 per cent in November, led by gains in aircraft and machinery

WASHINGTON – 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 per cent in November. That follows a 0.5 per cent decrease in October. The index now stands at its highest level on records dating back to 1992.

A 21.8 per cent 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 per cent. Economists watch this category closely because it excludes volatile orders for aircraft and defence equipment.

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