US factories busier

Most of the pick-up in orders was for aircraft

Demand for costly items, including everything from refrigerators to planes, rose in November, reported the US Commerce Department on Friday.

New orders for durable factory goods, expected to last longer than three years, rose 2.3% in November, to $211bn (£143bn).

The previous month it dropped by 5.5%, in what was widely interpreted as a slump in consumer demand.

The data is closely watched because it often foreshadows trends in the wider economy.

The boost in orders suggests that the US economy, which has been slowing down after ten years of unparalleled growth, still has some underlying strength.

But a surge in orders for aircraft and wares defined as "not personal goods" accounted for most of the pick-up.

Consumer spending flat

This was reflected in new consumer spending figures, also released on Friday by the Commerce Department, which showed that spending was flat in November.

It rose just 0.3%, the smallest increase since July 1988.

Consumer demand has been the engine of the US economy.

But people have recently been tightening their belts, contributing to the slowdown.