U.S. durable goods orders rose in September by more than forecast, indicating manufacturers continue to benefit from steady demand and lean inventories.
Written content from RTT
Partly reflecting a rebound in orders for transportation equipment, the Commerce Department released a report on Tuesday showing new orders for U.S. manufactured durable goods jumped by much more than expected in the month of September.
The report said durable goods orders surged up by 1.9 percent in September after rising by rising by 0.4 percent in August. Economists had expected durable goods orders to increase by 0.5 percent.
The much stronger than expected growth in durable goods orders came as orders for transportation equipment soared by 4.1 percent in September after slumping by 0.9 percent in August.
Excluding the spike in orders for transportation equipment, durable goods orders climbed by 0.8 percent in September compared to a 1.0 percent jump in the previous month. Ex-transportation orders were expected to rise by 0.4 percent.
Orders for primary metals showed a substantial increase, while orders for fabricated metal products and communications equipment also saw notable growth.
On the other hand, the report showed sharp drops in orders for electrical equipment, appliances and components and computer and related products.
The Commerce Department said orders for non-defense capital goods excluding aircraft, a closely watched reading on business spending, increased by 1.0 percent in September after jumping by 2.1 percent in August. Read more from RTT
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