U.S. factory orders increase

Thursday, Dec. 2, 2004 | 9:16 a.m.

Orders placed with U.S. factories rose 0.5 percent in October, the fifth increase in the past six months, paced by improving demand for defense equipment and non-durable goods such as petroleum and drugs, a government report showed.

The rise to $371.5 billion followed no change in September, which was revised from a 0.4 percent decline first estimated, the Commerce Department today said in Washington. Excluding transportation equipment, orders increased 0.6 percent, the sixth straight gain.

Manufacturing "is in reasonably good shape," said David Resler, chief economist at Nomura Securities International Inc. in New York. Orders may rise around 7 percent to 8 percent this year which suggests "we are getting growth, not exceptional growth, but nonetheless reasonable good growth," he said.

archive