Factory orders increase 0.7% in Nov.

Associated Press

WASHINGTON

Businesses ordered more factory goods in November, responding to stronger consumer demand for household appliances, computers and furniture.

The Commerce Department says that total orders increased 0.7 percent in November. That follows a 0.7 percent drop in October.

The overall figure was pulled down by a drop in volatile transportation orders. Excluding aircraft and autos, orders rose 2.4 percent — the largest jump for that category in eight months.

The November increase left total orders at $424.5 billion. Economists consider that a healthy range for manufacturing activity. It’s 20.4 percent above the recession low, hit in March 2009.

Manufacturing activity has expanded in every month since the recession officially ended in June 2009. Analysts said November’s increase in factory orders should translate into further gains in production in 2011.

Consumers are coming off the busiest holiday shopping season in four years. Businesses are anticipating stronger economic activity to continue this year, helped by a tax cut that will put more money in consumers’ pockets.

Overall, orders for long-lasting goods dropped 0.3 percent. But the decline was heavily influenced by a 50.6 percent plunge in orders for commercial aircraft. Most big-ticket consumer goods showed gains.

Household appliances increased 3.8 in November. Furniture orders rose 4.2 percent. And demand for computers jumped 13.5 percent.

Consumer strength also was apparent in the 1.7 percent rise in nondurable goods. Food, gasoline and clothing all showed gains in November.

One area of weakness in November was declining demand for autos. Still, through the first 11 months of last year, orders for cars and trucks are up more than 12 percent from the same period in 2009.