US economy’s dilemma does not seem to be ending, as the pending sales of previously owned U. S. homes fell more than expected, but a rush new factory orders is also seen.

In the end of 2009, the expenditure on new equipment in manufacturing sector signaled economic growth, but the index of signed purchase agreements sank 16 percent and factory orders rose by 1.1 percent.

“Chances are you are going to see much more of a rebound in business investment, so there is more strength ahead in manufacturing orders”, said James O’Sullivan, chief economist at MF Global Ltd. in New York.

Some further confidence is given by the auto sales rising seen in December, which is the highest increase since summers. The new vehicle purchases rose to around 11.5 million units in December. “The buildup in sales and contracts was driven by the rush to beat the deadline for the tax credit”, said Bill Jordan, an economist at Ried Thunberg & Co. in Jersey City, New Jersey.

Most of the stocks rose with The Standard & Poor’s 500 Index rising 0.3 percent to 1,136.52.