Durable goods orders post biggest gain in six months

 

Demand for a range of long-lasting U.S. manufactured goods rose more than expected in September to post the largest increase in six months, cementing views of a step-up in economic growth in the third quarter, even though new orders for transportation equipment fell, Reuters reported.

 

The Commerce Department announced this morning that durable goods orders, excluding transportation, rose 1.7 percent after falling 0.4 percent in August. The rise beat economists’ expectations for a 0.4 percent increase.

 

However, a drop in demand for transportation equipment as bookings for motor vehicles and civilian aircraft declined pulled down overall orders 0.8 percent. That followed a 0.1 percent dip in August and was in line with economists’ expectations for a 0.9 percent fall. Transportation orders fell 7.5 percent, the largest decline since April.

 

The tenor of the report was further strengthened by a 2.4 percent jump in non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending. That was the largest increase since March. That category increased 0.5 percent in August, and last month’s increase was well above economists’ expectations for a 0.5 percent rise.

 

Demand for a range of long-lasting U.S. manufactured goods rose more than expected in September to post the largest increase in six months, cementing views of a step-up in economic growth in the third quarter, even though new orders for transportation equipment fell, Reuters reported.

 

The Commerce Department announced this morning that durable goods orders, excluding transportation, rose 1.7 percent after falling 0.4 percent in August. The rise beat economists’ expectations for a 0.4 percent increase.

 

However, a drop in demand for transportation equipment as bookings for motor vehicles and civilian aircraft declined pulled down overall orders 0.8 percent. That followed a 0.1 percent dip in August and was in line with economists’ expectations for a 0.9 percent fall. Transportation orders fell 7.5 percent, the largest decline since April.

 

The tenor of the report was further strengthened by a 2.4 percent jump in non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending. That was the largest increase since March. That category increased 0.5 percent in August, and last month’s increase was well above economists’ expectations for a 0.5 percent rise.