Factory Orders Rise As Services Stall

U.S. orders for manufactured goods rose in December, but a separate report showed growth in the vast services sector stalled in January, painting a mixed picture for an economy still mired in recession.

The Commerce Department said factory orders rose 1.2% in December, lifted by transportation and military orders, after a revised 4.3% decline in November. It was the second rise in the last three months and was mostly in line with forecasts.

Separately, the Institute for Supply Management, an industry trade group, said its non-manufacturing index edged lower to 49.6 in January from a revised 50.1 in December. That followed two straight months of increases and bucked economists’ forecasts of a rise to 52.0.

Another report from outplacement firm Challenger, Gray & Christmas showed layoff announcements surged by 32% to 212,704 in January from 161,584 in the prior month, raising concern that a recent stabilization in first-time unemployment claims could prove fleeting.