U.S. factory orders up 1.1% in December (by Greg Robb)

WASHINGTON (MarketWatch) - Factory orders rose 1.1% in December, the Commerce Department reported Friday. Economists polled by MarketWatch had expected a 1.4% rise. But the report was bolstered by an upward revision to November, where orders were revised to a 2.2% increase from an initially reported 1.8% rise. In December, shipments rose 0.7%, the biggest gain since July and the seventh consecutive monthly increase. Unfilled orders rose 1.4% in December, the largest gain since March 2008. Inventories increased a slim 0.1%. Durable goods rose 3.0% in December, unrevised from the initial estimate last week. Nondurable goods orders fell 0.4% in the month. Orders for capital goods excluding aircraft and defense, so-called "core" capital equipment, rose 3.1% in December, and were up 10% in the past year. Shipments of core capital equipment, a key component of investment in the gross domestic product calculations, rose 3.1% in December, and were up 9.1% compared with a year earlier. There are already signs that the strength in the factory sector is continuing into 2012. The Institute for Supply Management reported earlier this week that its gauge of manufacturing activity expanded to 54.1 in January, the fastest pace in seven months.