Reports Ease Economic Concerns Factory Orders Rise 1.3 Percent; Unemployment Claims Inch Up

Surging demand for electronic components and aircraft boosted manufacturing while unemployment benefit applications remained low, the government said Thursday in reports depicting a strong but not overheated economy.

“The reason everything is so wonderful is we’re not in a boom. We’ve got solid moderate growth that therefore can be sustained,” said economist David Orr of First Union Corp. in Charlotte, N.C.

Orders to U.S. factories jumped 1.3 percent in August to a seasonally adjusted $335.4 billion, the Commerce Department said. It was the third consecutive increase but over-stated manufacturing’s momentum.

The strength was almost entirely concentrated in two categories. Orders for electronic components such as semiconductors and circuit boards soared 76.9 percent, while aircraft orders jumped 30.8 percent.

Without those two gains, orders overall would have fallen 1.7 percent.

New applications for unemployment benefits inched up by 1,000 last week to 308,000, the Labor Department said. It was the first increase in a month but left claims at a level reflecting continued demand for workers.