Washington, DC, United States (4E) – Long-lasting goods saw better-than-expected demand in November, a sign of improving confidence among companies with business investment increasing at its fastest rate since January.
Durable goods orders rose 3.5 percent in November as demand expanded for a number of goods such as aircraft, electronic products, computers and machinery, according to the Commerce Department.
Economists predicted orders for durable goods to increase 2 percent in November, according to a survey by the Dow Jones Newswires. The rise was driven by business investment, led by 21.8 percent jump in civilian aircraft orders.
Orders for nonmilitary capital goods excluding aircraft, which is a closely monitored gauge for business spending plans, climbed 4.5 percent, snapping a two-month decline and was the biggest gain since January.
The stronger demand for motor vehicles also provided a bright spot in November. Orders in the segment jumped 3.3 percent, the highest since February and an indication that consumers are pushing through with their car purchases after delaying the decision in recent years.
Manufactured-goods orders, excluding the transportation category, inched higher 1.2 percent and the largest rise since May. In a separate report by the Commerce Department, it showed that U.S. consumers increased their spending, particularly for durable goods, last month.