New orders for U.S. manufactured goods showed a notable rebound in the month of September, according to a report released by the Commerce Department on Friday, with the bounce largely due to a jump in orders for transportation equipment.
The report said factory orders increased by 4.8 percent in September after tumbling by a revised 5.1 percent in August. Economists had expected orders to increase by about 4.9 percent compared to the 5.2 percent drop originally reported for the previous month.
The rebound by factory orders in September was due in large part to a 31.3 percent increase in orders for transportation equipment, which came on the heels of a 33.7 percent drop in August.
Orders for non-defense aircraft and parts soared 2,649.7 percent, as aerospace giant Boeing (BA) received orders for 143 airplanes in September compared to just one in the previous month.
Excluding the jump in orders for transportation equipment, factory orders increased by 1.4 percent in September compared to a 0.7 percent increase in August.
The report said durable goods orders surged up by 9.8 percent in September after tumbling 13.1 percent in August, while orders for non-durable goods rose by 1.0 percent following a 2.2 percent increase in the previous month.
Additionally, the Commerce Department said shipments of manufactured goods increased by 0.9 percent in September after falling by 0.2 percent in August.
Inventories of manufactured goods increased for the third straight month, rising by 0.6 percent in September following a matching increase in August.
The Commerce Department said the inventories-to-shipments ratio came in at 1.28 in September, unchanged from the previous month.
The report also showed that orders for non-defense capital goods excluding aircraft, an indicator of business spending, edged up by 0.2 percent in September following a 0.3 percent increase in August.
by RTT Staff Writer
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