BUSINESS

November durable goods orders jump 3.8 per cent, largest gain in 4 months, driven by airplanes

12/23/2011 08:42 EST | Updated 02/22/2012 05:12 EST
WASHINGTON - Business demand for long-lasting manufactured goods rose by the largest amount in four months in November, driven higher by a big jump in orders for airplanes.

The Commerce Department says orders to U.S. factories for durable goods rose 3.8 per cent in November, the biggest gain since July. However, so-called core capital goods, a proxy for business investment spending, dropped for a second straight month, falling 1.2 per cent after a 0.9 per cent decline in October.

The declines in business capital goods excluding aircraft represented a setback in a key pocket of strength for the economy this year. Business investment spending has surged as companies stepped up orders to take advantage of tax breaks that are set to expire at the end of this year.