US factory orders rebound in November on commercial aircraft demand

WASHINGTON, Jan 29 (Reuters) - New ⁠orders for U.S. ⁠factory ‍goods rebounded in November as demand for commercial aircraft surged, though growth in business spending on equipment likely moderated ‍in the fourth quarter.

Factory orders increased 2.7% after an upwardly ​revised 1.2% decline in October, the Commerce Department's Census Bureau said on Thursday. ​Economists polled by Reuters had forecast factory orders increasing 1.6% after a previously reported 1.3% drop in October. Orders advanced 3.4% on a year-on-year basis in November.

The ​report was delayed by the 43-day shutdown of the federal government. President Donald Trump's sweeping import tariffs have depressed a large ​segment of manufacturing, which accounts for 10.1% of the economy, though a few industries have received ‌a lift from the protection against foreign competition.

An artificial intelligence boom has supported the technology sector. Economists are ​cautiously optimistic of a broad improvement in ⁠manufacturing this year as the drag from import duties eases and tax legislation, which made bonus depreciation permanent ‌among other perks, takes effect.

Commercial aircraft orders soared 97.6% in November. There were solid increases in orders for electrical equipment, appliances and components as well as ‌fabricated metal products. Machinery orders rose 0.3% while those for computers and electronic products ‌were unchanged.

The Census Bureau also reported that orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, ‍increased 0.4% in November instead of 0.7% as was initially reported earlier this week.

Shipments of these so-called core ⁠capital goods rose 0.2% rather than 0.4% as reported this week. Business investment in equipment expanded at a 5.2% rate in the third quarter, contributing to the fastest economic growth pace in three years.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

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