Orders For Big-Ticket Manufactured Goods Increased in November

WASHINGTON, D.C. — Orders to U.S. factories for big-ticket manufactured goods rose a moderate 0.9 percent in November, with a key category that tracks business investment plans showing a gain.

The November gain in orders for durable goods — items that expected to last at least three years — followed stronger gains in recent months including a 3.8 percent rise in October, the Commerce Department said Wednesday.

A key category that serves as a proxy for business investment spending rose a modest 0.4 percent in November following much stronger gains of 3.6 percent in October and 3.9 percent in September.

Analysts are concerned that business investment could begin to fade if the resurgence of the coronavirus curtails demand.

The strength in November included a 3.4 percent rise in demand for motor vehicles and parts, which represented a rebound following a 2.5 percent drop in October.

Overall, orders for transportation equipment rose by 1.9 percent. Demand for commercial aircraft fell by 2.9 percent as the airline industry continued to be battered by a slump in travel due to the pandemic.

Oren Klachkin, an economist at Oxford Economics, noted the slowdown in overall orders and said "factory activity is set to grind forward in a low gear in 2021." He said this would reflect weaker spending on consumer goods and a slowing in economic momentum.