Factory Orders Rise 0.3% in December

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rders placed with factories rose 0.3% in December, the Commerce Department reported Thursday.

The $1 billion increase to $379.1 billion followed a revised 1.4% rise in November and overall orders were at the highest level since the current series of figures first started in 1992, Commerce said.

Excluding transportation equipment, orders rose 0.7%, Commerce reported.



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

Analysts were expecting orders to rise 0.5%, Reuters reported, though Bloomberg reported one economist said the order numbers give the economy “significant momentum as 2005 unfolds.”

Overall orders would have been stronger if not for a 2.1% drop in transportation equipment bookings and a 6.2% drop in electrical equipment, Commerce reported.

Bookings for durable goods, which account for about 55% of total orders, rose 1.1%, following a revised 2% increase in November, the department reported.

ommerce also said that orders waiting to be filled increased 0.6%. Unfilled orders for transportation equipment had largest increase, 0.7%, following a 1.8% increase in November.

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