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Thursday, January 3, 2008

US factories see rise in orders


US orders for factory goods saw their biggest jump in four months in November, US Commerce Department figures showed.

Orders rose by 1.5% in November, more than the 0.7% forecast and October's 0.7% rise.

However orders for durable goods, items intended to last longer than three years, fell 0.1% in November.

The data eased worries about health of the US economy, propelling Wall Street stocks higher.

The upbeat report came after figures on Wednesday showed that the US manufacturing sector contracted in December, seeing its weakest monthly output since April 2003.

Slowdown

The US economy is expected to slow in 2008 as the impact of a global credit crunch - caused by problems in the country's housing market - filters through to the wider economy.

Fears exist that high energy costs and financial market turmoil will act as a brake on consumer and business spending, and thus hamper economic growth.

This latest data showed declines in orders for machinery, electronic products and defence equipment, which are classed as durable goods.

Non-durable goods orders - which include food, textiles, paper, and chemicals - jumped 3%.

It was the steepest rise in that category since March 2005.

Non-defence capital goods excluding aircraft, regarded as a measure of business investment, fell 0.1% in November.


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