New orders for U.S. manufactured goods excluding transportation rose more than expected in November, to record their largest gain in eight months, according to a government report on Thursday that pointed to continued strength in the manufacturing sector.
The Commerce Department said durable goods orders excluding transportation increased 2.4%, the largest increase since March, after a 1.9% drop in October. However, overall orders dropped by a larger than expected 1.3% last month, dragged down by a plunge in bookings for civilian aircraft and motor vehicles.
Economists had expected orders excluding transportation to rebound 1.6% last month and overall bookings to fall 0.5%.
Durable goods orders are a leading indicator of manufacturing and latest report should help to allay fears factory activity was slowing down.
The report also showed non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, rebounded 2.6% in November after dropping 3.6% the prior month. Economists had expected a 2.5% increase.
Outside transportation, orders for computers and electronic products increased by 5.8%, the largest gain since February 2009. There were also strong gains in bookings for primary metals, communications equipment and electrical equipment, appliances and components.
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