Factory Orders Up 7.3% in ‘87; 2.5% Dec. Surge

Factory orders shot up 2.5% in December, ending a year in which demand for manufactured goods posted the biggest increase since 1984, the government reported today.

For the year, orders for manufactured goods climbed 7.3% to $2.44 trillion, the Commerce Department reported. This followed a decline of 0.6% in 1986 orders and a 0.3% advance in 1985.

Orders had been up 9.3% in 1984, but for the next two years American manufacturers came under heavy pressure from foreign competitors.

The Reagan Administration two years ago began a campaign to push the value of the dollar lower in an effort to make U.S. exports competitive again on overseas markets.

Looking to Exports

Many economists are looking for continued strength in U.S. exports this year to offset an expected slump in consumer spending and keep the economy out of a recession.

For December, orders for both durable and non-durable goods totaled a seasonally adjusted $214.77 billion, an increase of $5.14 billion from the November level.

The 2.5% advance was the strongest since a matching 2.5% rise last March. It followed a 0.1% increase in November.

Almost three-fourths of the December gain came from a 41.6% jump in demand for aircraft. Because so much of the gain was centered in a single category, analysts said the overall increase overstates the strength in the manufacturing sector somewhat.