Separately, the number of U.S. workers filing new claims for unemployment benefits fell back last week from three-year highs but continuing claims jumped again, suggesting some weakening in labor markets.

Orders for manufactured goods increased 1.5%, following a revised 0.7% climb in October, the U.S. Commerce Department said today. Originally, factory orders were seen 0.5% higher in October. Economists had forecast that factory goods orders were up 0.4% in November.

Demand in November for durable goods, expensive things designed to last at least three years, decreased, down 0.1%. A week ago, Commerce estimated durables that month rose 0.1%. Durables orders fell a revised 0.5% in October.

While durables were lower in November, nondurable goods orders increased by 3.0%, after rising 2.0% in the prior month.

Meanwhile, a yardstick for capital spending by businesses — nondefense capital goods orders excluding aircraft — fell 0.1% in November, after decreasing 3% in October.

Meanwhile, initial claims for jobless benefits fell 21,000 to 336,000 after seasonal adjustments in the week ended Dec. 29, the U.S. Labor Department said today. Wall Street economists had expected only a 4,000 drop.

There were no special factors, a Labor Department analyst said, though state-by-state data suggested some volatility around the holidays.

The four-week average of new claims, which economists use to smooth out weekly volatility, fell slightly, by 750 to 343,750. Still, the four-week average is well above levels that persisted throughout most of 2007. Claims for the week ending Dec. 22 were revised to 357,000 from 349,000.