U.S. factory orders increased in December 2007 -- a sign that business spending remains resilient even as employers pull-back regarding hiring plans.

Factory orders increased 2.3% in December 2007, in-line with the 2.3% consensus estimate, the U.S. Commerce Department announced Monday, in a statement. Factory orders rose a revised 1.7% in November 2007. Excluding transportation orders, factory orders increased 0.7% in December 2007.

Durable goods orders drove factory orders -- increasing 5% in the month. Orders for nondurable goods fell 0.4%; machinery increased 7.3%, and electronics rose 4.1%

During 2007 factory orders rose 1.4%, following a 5.1% increase in 2006.

Meanwhile, inventories increased 0.8%, the largest monthly inventory increase since July 2006.

Economist Steve Affinito told BloggingStocks Monday the factory order data indicates that the industrial sector's capital spending remains resilient, despite slowing in many other areas of the U.S. economy.

"It's one of few bright spot we can point to in the economy. Capital equipment investment continues, even as hiring plans are pulled back," Affinito said. "However, it's too soon to tell if this is the start of a new business spending trend or a momentary pick-up after some weakness."

Affinito added that he would have to see factory order increases "moving back toward the 4-5% range on an annualized basis" before he could feel confident about an enduring recovery in order activity.