Orders for U.S. manufactured goods rose unexpectedly in November in the latest sign of strength in a key sector leading the economic recovery, official data showed Tuesday. The Commerce Department reported that factory orders rose 0.7 percent in November following a 0.7 percent decline in October. Analysts expected orders to fall 0.3 percent in November. The department said durable goods orders fell 0.3 percent in November, down from its late December estimate of 1.3 percent. The decline in orders for durable goods, which includes items such as computers and cars, had been due mainly to a more than 50 percent plunge in aircraft orders. Excluding the transportation sector, which can be volatile, factory orders rose 2.4 percent in November, the strongest gain since March. Orders for non-durable goods led the gains, up 1.7 percent from October. Over the first 11 months of 2010, factory orders were up 12.3 percent from the same period a year ago and the Institute of Supply Management said Monday that U.S. manufacturing activity rose for 17 straight months through December.
