US -Factory Orders Up More Than Expected (Rise 1.2%, Most in 4 Months)

WASHINGTON (Reuters) - U.S. factory orders rose at the fastest rate in four months during November as strong demand for new commercial aircraft pushed business up by 1.2 percent to a seasonally adjusted $377.42 billion, the Commerce Department said on Tuesday.

The November increase followed an upwardly revised 0.9 percent orders gain in October that previously was reported as a 0.5 percent rise and outstripped Wall Street economists' forecasts for a smaller 0.8 percent pickup.

The data added to other signs that the nation's industrial sector wrapped up 2004 on a relatively healthy note, including the Institute for Supply Management's report on Monday showing its index of manufacturing activity moved higher in December.

Further details from Bloomberg.
"Jan. 4 (Bloomberg) -- Orders placed with U.S. factories rose in November by the most in four months, paced by improving demand for commercial aircraft and business equipment, a government report showed.
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Stronger demand is making it harder for some manufacturers to fill orders. Bookings waiting to be filled jumped 1.1 percent, the most since July, suggesting production will pick up early this year and boost economic growth. More factories reported a rise in orders last month than in November and inventories grew at a faster pace, a private survey yesterday showed.

``Business confidence about the economy is rising,'' said Joel Naroff, president of Naroff Economic Advisors in Holland, Pennsylvania. ``Manufacturing led the way in 2004 and this sector stands poised to continue doing so during the first half of 2005.'' Naroff was the best forecaster of gross domestic product for the 12 months ended in June, according to a survey by Bloomberg Markets.
Orders would have been stronger had it not been for a 32 percent slump in bookings for defense equipment. Excluding military hardware, orders increased 2.3 percent, the most since March"

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aSydvmHu1IAg&refer=home

The US economy, under President Bush continues to hum along nicely.
Even with a 32% decline in spending on defense equipment, industrial output still continues to rock.

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