Durable-Goods Orders Up 4.1% in December

A leap in demand for airplanes and electronic equipment pushed up orders for big-ticket goods by 4.1% in December, helping manufacturers to their best year since 1997.

For all of 1999, orders for durable goods--items expected to last at least three years--rose 7.1%. The performance matched the annual gain recorded two years ago and followed a 3.6% increase in 1998, the Commerce Department said Thursday.

“The numbers clearly show that the manufacturing sector is very healthy right now,” said David Huether, an economist with the National Assn. of Manufacturers.

Economists said the strong showing for the year and for December largely reflects the vibrant U.S. economy that is behind the strong demand from American businesses and consumers for big-ticket manufactured goods, particularly high-tech and other equipment that allow companies to become more productive.

In another report, the Department of Housing and Urban Development said the nation’s home ownership rate climbed to an all-time annual high of 66.8% in 1999, further evidence of the economy’s strength. Plentiful jobs, rising incomes, stock market gains and low inflation have put Americans in the buying mood, economists said. In 1998, the rate was 66.3%.

The bigger-than-expected 4.1% increase in durable-goods orders in December was the best showing since July and boosted orders to a seasonally adjusted $212.9 billion. Many analysts were forecasting a 0.8% rise. In November, orders rose 1%.

Shipments of big-ticket durable goods, a good signal of current demand, rose 0.7% in December, the seventh increase in the last eight months.

Separately, the Labor Department said the number of Americans filing new claims for unemployment benefits rose by 1,000 last week to 266,000. Even with the small gain, claims were left at a level indicating that employers are having trouble finding scarce workers to fill job openings.