Factory Orders Rise in November

NEW YORK ( TheStreet) -- New orders for manufactured goods unexpectedly increased in November, as the strong uptrend in the manufacturing sector continues.

The U.S. Census Bureau said on Monday that factory orders increased 0.7% in November, after dropping 0.7% in October. That was significantly better than the 0.3% drop economists were expecting, according to consensus estimates from Briefing.com.

Excluding the volatile transportation sector, new orders increased 2.4%. Analysts strip out the transportation sector as orders for commercial aircraft tend to vary sharply from month to month and skew the figure.

The factory orders report includes both durable and non durable goods orders. The durable goods report is released in advance of the factory orders report.

In December, the Commerce Department said durable goods orders dropped 1.3% in November disappointing expectations. The latest report revises the figure to a milder 0.3% drop. Nondurable goods orders rose 1.7% in November. Transportation equipment orders declined 11.1%.

Shipments up three consecutive months rose 0.8%. Unfilled orders rose 0.6% and inventories up 10 of the last 12 months rose 0.8% following a 1.1% increase.

Stocks were trading weak after the report as investors awaited minutes of the Fed meeting. Copper and oil were also lower on Tuesday after hitting fresh highs on Monday.

-- Written by Shanthi Bharatwaj in New York

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