Factories Report Big Increase In Orders For Durable Goods

Orders to U.S. factories for big-ticket durable goods came roaring back in January after two declines, providing the Federal Reserve with a bit more evidence - if it wants it - to justify an increase in interest rates.

Spurred by a 14.9 percent surge in orders for electronic goods such as communications equipment and semiconductors, overall orders jumped 3.6 percent last month after declines of 1.8 percent in December and 1.7 percent in November, the Commerce Department said Thursday.

It was more than double the 1.4 percent gain many economists expected, and the advance for nonmilitary goods - 5 percent - was the best since February 1993.

Durable goods - long-lasting items ranging from tanks to toasters - are a key barometer of the nation’s manufacturing strength.

January’s increase brought orders to a seasonally adjusted $174.8 billion, still short of the $174.9 billion level of October.

In a second report, the Labor Department said new applications for unemployment insurance rose 11,000 last week to 316,000.