New orders for manufactured goods rose in November, and applications for unemployment benefits declined last week, signaling that the uneven U.S. economic recovery is gaining strength from signs that manufacturing will contribute to economic growth and the job market is stabilizing. The Commerce Department reported Thursday that orders for durable goods (expensive manufactured items expected to last at least three years) rose a smaller-than-expected 0.2 percent last month, largely due to a plunge in orders for civilian aircraft. But excluding volatile transportation items, orders jumped 2.0 percent after falling 0.7 percent the previous month. Durable-goods orders are a leading indicator of manufacturing activity and provide a good indication of overall business health. Non-defense aircraft orders fell 32.6 percent last month. Non-defense capital goods excluding aircraft (a closely watched gauge of business spending) jumped 2.9 percent last month after falling 2 percent in October. Durable-goods inventories fell 0.2 percent in November after being unchanged the previous month. Shipments increased 0.3 percent, adding to October's 0.7 percent gain. Meanwhile, the number of newly laid-off workers filing claims for jobless benefits fell more than expected last week, and the four-week average of jobless claims fell for the 16th consecutive week to its lowest level since September 2008, the peak of the financial crisis. The Labor Department reported that new jobless claims fell 28,000 to 452,000 last week, and the four-week moving average, which smoothes out weekly fluctuations, fell to 465,250. Jobless claims have been declining since summer, and the improvement is seen as a signal that job cuts are slowing and hiring could accelerate early in 2010. However, the number of Americans continuing to receive jobless insurance jumped to 4.37 million last week, an increase of nearly 142,000 from the previous week. The large increase shows that the problem of high unemployment persists despite a decrease in layoffs.
