Orders at U.S. manufacturers increased for the fourth month in a row in December, offering hope that the nation’s economy has turned the corner.

The U.S. Commerce Department said that the boost in orders placed with U.S. factories rose by 2.3 percent in December; it was the biggest rise since last July.

Orders for some segments were especially strong: nondefense capital goods orders, excluding aircraft, for instance, rose 4.5%.  This segment is a closely-monitored measure of business capital spending, now and in the future. The performance in December was somewhat better than the 2 percent rise that economists had been predicting.  

Orders for all durable goods increased by 5 percent in December.  This segment includes expensive products, such as motor vehicles, that have life spans exceeding three years.  In November, orders for this segment only grew by 0.5 percent over the previous month.

Airplanes were a strong performer in this latest report. Orders for military aircraft rose by more than 100 percent in December, while demand for non-defense aircraft increased by almost 12 percent.  Other industries that did well in this latest report on orders from U.S. manufacturers: computers and machinery.

For all of 2007, total orders placed with U.S. manufacturers increased by 1.4 percent over year-earlier totals.  Total orders cover both durable and nondurable goods. This follows a strong performance by the nation’s manufacturers in 2006, when factory orders rose by 5.1 percent over year-earlier data.

The Institute for Supply Management's (ISM) latest index of manufacturing activity also had some positive news.  The report, issued last week, showed signs that manufacturers made progress in January. The ISM index rose to a level of 50.7 in January, compared to 48.4 in December.  An index level above 50 indicates growth in the manufacturing sector.