AP: Nov. Factory Orders Up on Aircraft Demand

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Nov. Factory Orders Up on Aircraft Demand

Wednesday January 4, 10:07 am ET

By Martin Crutsinger, AP Economics Writer

Factory Orders Post Biggest Gain in 3 Months in Nov. on Surge in Commercial Aircraft Demand

WASHINGTON (AP) -- Orders to U.S. factories posted the biggest gain in three months in November but the strength was concentrated in a surge in demand for commercial aircraft.

The Commerce Department reported Wednesday that orders to factories rose by 2.5 percent in November to a record-high of $407.7 billion. It was the best percentage gain since a 2.9 percent rise in August and followed a 1.7 percent October increase.

However, the report was heavily influenced by a surge in demand for commercial aircraft, which shot up by 134.3 percent. Outside of all transportation categories, orders were essentially unchanged, the fourth month out of the past five that this broad category has either fallen or shown no growth. Economists are looking for a slowdown in manufacturing growth in coming months as companies catch up on an order backlog caused by the Gulf Coast hurricanes.

They believe that manufacturing will also be held back by weakness in the auto industry, where industry giants General Motors and Ford are fighting a slowdown in sales following a summer-surge that reflected use of attractive incentive offers to lure consumers into showrooms.

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http://biz.yahoo.com/ap/060104/economy.html?.v=4