US factory orders surge in September

NEW orders for US-made goods increased more than expected in September, boosted by strong demand for computers and electronic products among others, but higher borrowing costs remain a challenge for manufacturing.

Factory orders jumped 2.8 per cent after rising 1.0 per cent in August, the Commerce Department’s Census Bureau said on Thursday (Nov 2). Economists polled by Reuters had forecast orders would increase 2.4 per cent. Orders advanced 0.7 per cent on a year-on-year basis in September.

Spending on goods surged in the third quarter, keeping a floor under manufacturing. But the sector, which accounts for 11.1 per cent of the economy, remains constrained by higher interest rates. Orders for computers and electronic products rose a solid 1.0 per cent. Orders of electrical equipment, appliances and components gained 1.0 per cent. Machinery orders increased 0.7 per cent.

Civilian aircraft orders rebounded 92.5 per cent, while motor vehicle, parts and trailers orders climbed 0.6 per cent.

Shipments of manufactured goods rose 0.4 per cent. Manufactured goods inventories increased 0.2 per cent, while unfilled orders shot up 1.4 per cent. The government also reported that orders for non-defence capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, increased 0.5 per cent instead of 0.4 per cent as reported in last month’s estimate.

Shipments of these so-called core capital goods fell 0.1 per cent instead of being unchanged as previously reported. Business spending on equipment contracted in the third quarter. REUTERS