Factory Orders Rise 1.2% in November

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rders placed with factories rose 1.2% in November, the largest increase in four months, the Commerce Department reported Tuesday.

The increase to $377.4 billion followed a revised 0.9% increase in October. Excluding transportation equipment, orders were unchanged after a 1% jump.

Rising orders translate to more demand for trucking services because factories use trucks to ship raw materials and finished products.

Overall orders would have been stronger had it not been for a 32% drop in bookings for defense equipment. Excluding military hardware, orders increased 2.3%, the most since March.

Commerce also said that orders waiting to be filled jumped 1.1%, the most since July. Orders for capital goods excluding aircraft, a proxy for future business investment, rose 0.8% after a 4% October decrease.

Bookings for durable goods, which account for about 55% of total orders, rose 1.4%, the biggest rise since July.

The report also said bookings for commercial aircraft surged 64% in November, which contributed to an 8.8% increase in orders for all transportation equipment.