WASHINGTON ( AP) — Orders for factory- made goods that signal business investment plans fell for a second straight month, part of a mixed report on manufacturing in November.
Overall factory orders rose 1.8 percent, the Commerce Department said Wednesday. The largest increase since July was chiefly because of a surge in airplane orders, which can be volatile from month to month.
Demand for so-called core capital goods, such as computers and electronic equipment, declined 1.2 percent after a similar drop in October. Economists pay closer attention to this category because it can be a good indication of business investment, which drives economic growth.
Still, the decline may be temporary. A private survey showed earlier this week that U.S. factories ended the year with their best month of growth since late spring.
Factories hired more workers last month, saw the most growth in new orders since April and ramped up production, the Institute for Supply Management said Tuesday.
John Ryding and Conrad DeQuadros, analysts for RDQ Economics, said they are more likely to overlook the weak report on factory orders after seeing the more positive ISM survey.
“This report for November activity feels like somewhat old news since the state of manufacturing in December has already been indicated in yesterday’s ISM report and it appears from that survey that manufacturing growth is picking up,” the economists wrote in a note to clients.
A bigger issue for U.S. factories may be Europe’s debt crisis. Many economists believe that Europe, a major market for American goods, has already slipped into a recession.
Economists also expect that economic growth in Asia will slow in coming months as well.
Both could weaken demand for U.S. goods and slow economic growth.
Comments are not available on this story. Read more about why we allow commenting on some stories and not on others.
We believe it's important to offer commenting on certain stories as a benefit to our readers. At its best, our comments sections can be a productive platform for readers to engage with our journalism, offer thoughts on coverage and issues, and drive conversation in a respectful, solutions-based way. It's a form of open discourse that can be useful to our community, public officials, journalists and others.
We do not enable comments on everything — exceptions include most crime stories, and coverage involving personal tragedy or sensitive issues that invite personal attacks instead of thoughtful discussion.
You can read more here about our commenting policy and terms of use. More information is also found on our FAQs.
Show less