Factory Orders Rebound in December

U.S. factory orders rose 0.4% in December, led by demand for defense equipment, furniture and appliances, the Commerce Department said Tuesday.

The increase pushed the value of factory orders to $320.6 billion for the final month of 2002, after a revised 0.8% dip in November, Commerce said.

A report released yesterday by the Institute for Supply Management showed that manufacturing has expanded for three straight months.

Analysts told Bloomberg that the combination of positive manufacturing and factory order news suggests that the trouble sector may continue to expand and help drive economic growth.

The trucking industry relies on factory orders and shipments for much of its business.

The increase in orders was driven by a 16.6% surge in defense orders, an 11% rise in appliance orders and 3% jump in furniture orders, Commerce said.

For all of 2002, factory orders were down just 0.8%, following a 7.4% decline in 2001.

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