New evidence of US rebound

The manufacturing sector is picking up

Further signs that the US economy is enjoying a broad-based recovery have emerged from the latest figures.

Official data showed new orders for durable goods such as cars and domestic appliances rose 3.3% last month, the fastest rate for more than a year.

A separate survey showed consumer confidence rising, although spending remained flat during October.

The Federal Reserve's latest Beige Book survey was also upbeat, noting signs of improvement in the jobs market.

The raft of new data comes just a day after official figures showed the economy growing at annualised rate of 8.2% in the July to September period - its fastest rate for nearly 20 years.

Getting better

Although growth is expected to slow over the rest of the year, analysts have been looking for signs that the recovery is spreading across all parts of the economy.

And the latest Beige Book survey - an anecdotal round up of economic conditions by the Fed's regional banks - indicated this was finally happening.

The manufacturing sector is moving forward at a robust clip Anthony Karydakis, Bank One Capital

"Descriptions of the pace of growth varied somewhat. But improvements appeared to be reasonably broadly based, with most districts noting growth in a number of industries," the Fed said.

Encouragingly, there were signs of the jobs market picking up, which could calm fears that the US is experiencing a jobless recovery.

"Labour markets conditions generally stabilized after an extended period of weakness," the Fed said.

"Several districts noted a slowing in layoffs and stronger demand for temporary workers."

There had already been good news on the jobs front earlier on Wednesday from the Labor Department.

The latest jobless data showed new claims for unemployment benefits last week fell 11,000 to 351,000 - the lowest level since January 2001.

Right direction

The latest growth in durable goods orders - shown in figures from the Commerce Department - means they have now risen in five of the last six months, giving a welcome boost to US industry.

Consumer confidence is rising

There were signs that business investment is continuing to pick up, with a 1.7% increase in core capital goods orders.

"The manufacturing sector is moving forward at a robust clip," said Anthony Karydakis, an economist at Bank One Capital.

"Still, a very considerable amount of slack remains to be absorbed - a process that will take some time - but things are moving decidedly in the right direction."

Improving mood

There was further evidence of rising consumer confidence from the latest University of Michigan sentiment survey.

The index rose to 93.7 in November, up from October's reading of 89.6.

The finding comes a day after the Conference Board's consumer confidence index also showed sentiment improving in November.

But while consumer confidence is rising, consumer spending appears to be pausing for breath.

Figures from the Commerce Department showed spending in October showed no change on the previous month, although incomes were up by 0.4%.