US September's Factory Orders Growth Exceeded Expectations
New orders for US goods increased more than expected in September. According to the US Commerce Department data, factory goods orders rose 0.7% in September. Economists has expected 0.5% gain. Meanwhile, indicator for August was revised up to 2.6%, instead of the previously reported 2.3% gain.
The Commerce Department also reported, that orders for transportation equipment increased 1.9% in September, reflecting a 118.7% jump in orders for defense aircraft and parts. Transportation equipment orders grew 13.3% in August. Orders for civilian aircraft and parts tumbled 17.5% in September. Orders for motor vehicles rose 0.5%.
Still, softening business spending on equipment suggested the manufacturing sector could be slowing. As it was reported yesterday by the Institute for Supply Management (ISM), a measure of new factory orders dropping to a 1-1/2-year low in October.