Increase in durable goods orders points to economic growth

Jan. 6, 2014

The U.S. Commerce Department stated that durable goods orders rose by 3.5 percent in November, with increased demand for a wide range of products, including electronic goods, computers, aircraft and machinery.

The U.S. economy is still going strong, as manufacturing industries are seeing positive development. This is reflected in the number of orders for long-lasting goods across various sectors in November, as recorded by the Commerce Department, Reuters reported.

Moreover, the level of projected business spending on capital goods saw the most dramatic increase in almost a year, which is another indicator of growth in the domestic economy, the news source added.

The U.S. Commerce Department stated that durable goods orders rose by 3.5 percent in November, with increased demand for a wide range of products, including electronic goods, computers, aircraft and machinery. This is stronger than the predicted growth of two percent and completely offsets October's slight dip of 0.7 percent. If transportation sector orders are excluded, the increase adds up to 1.2 percent — the biggest since May 2012.

RELATED: US equipment and software investment to increase in 2014

In addition, the level of non-defense capital goods orders, with the aircraft industry excluded, went up by 4.5 percent following two consecutive months of downward movement. That was the steepest growth since the start of 2012, Thomson Reuters pointed out.

Growing orders across many manufacturing sectors is in line with other data that shows economic growth, including industrial production. Transportation is also experiencing a solid increase, with orders rising by 8.4 percent in November following a drop of 3.5 percent in October. The biggest rise was recorded in civilian aircraft orders, which surged 21.8 percent, data showed.

Sponsored Recommendations

Choosing The Right Partner for CHIPS Act Investments

As the U.S. looks to invest in the semiconductor research and production using CHIPS Act 2022 funding, it's important to choose the right partner.

EMWD Uses Technology to Meet Sustainability Goals

Eastern Municipal Water District pilots artificial intelligence-enabled control and machine learning to help save energy, reduce costs, and improve quality.

Protein Processing Solutions: Automation & Control

For protein processors looking to address industry challenges, improve efficiency, and stay ahead in a competitive market, Rockwell Automation offers tailored automation, control...

Automotive Manufacturing Innovation: Smart Solutions for a Connected Future

Rockwell Automation provides automation and control systems tailored for the automotive and tire industries, supporting electric vehicle production, tire production, battery production...