Factory Orders Rise 1.2% in Nov., 1st Increase Since Aug.

New orders for manufactured goods rose 1.2% in November, the first increase since August, as companies producing electronic products enjoyed a surge in demand.

The Commerce Department said Wednesday that the November increase in factory orders to a seasonally adjusted $365.2 billion followed no gain in October and a 1% decline in September.

Much of the strength came from a $3-billion rise in orders being placed with manufacturers of electronic equipment, reflecting strong demand for components, including semiconductors.

The 8.4% advance for electronic manufacturing companies is the fifth increase in the last six months and the biggest since July 1998.

Orders for fabricated metals such as steel rose 2.6% to $20.6 billion. This sector is struggling to recover from a flood of cheap imported steel that forced the layoff of thousands of U.S. steelworkers and led the industry to successfully petition for penalty tariffs to stem the tide of foreign imports.

Orders for cars, planes and other transportation equipment fell 3.5% to $45.1 billion, reflecting in large part a drop in demand for aircraft and parts.

Excluding the volatile transportation category, orders would have been up 1.9%, the biggest advance since a 2.6% rise in July.