US factory orders beat expectations in September amid broad strength

WASHINGTON, Nov 3 (Reuters) - New ‌orders for ​US factory ​goods increased more than expected in September, boosted by bookings for aircraft and a range of other goods, ‌government data showed on Tuesday.

Factory orders rose 1.8% after ⁠an upwardly revised 0.3% gain in August, the Commerce Department's Census Bureau said. ‌Economists polled by Reuters had ‌forecast orders surging 1.2% after a previously reported 0.1% gain in August.

Orders advanced 7.2% on a year-over-year basis in September.

An artificial ​intelligence infrastructure buildout and strong consumer spending are anchoring manufacturing, which accounts for about 9.4% of the economy.

But economists have ⁠cautioned that rising interest rates and declining inflation-adjusted household income would hamper manufacturing activity next ​year, especially the segments not exposed to the AI spending frenzy.

Though an Institute for Supply Management survey ​on Monday showed production at factories booming ‌in October, sentiment among manufacturers continued to deteriorate, with pricing volatility, longer lead times, tariffs and the ⁠US-Israeli war with Iran cited as major drags.

Factory orders in September were driven by 28.3% jump in bookings for the volatile civilian aircraft and ⁠parts component. Orders for motor vehicle bodies, parts and trailers edged up 0.1%. ​Machinery orders soared 1.5%. Orders for computers and electronic products rose 0.8%, and vaulted 14.9% year over year.

Orders for electrical equipment, appliances and components fell ‌0.3%. The Census Bureau also reported that orders for non-defense capital goods excluding aircraft, which are seen ‌as a measure of business spending plans on equipment, increased 0.6% ⁠in September instead of 0.5% ‌as reported last ​month.

Shipments of these so-called core capital goods shot up 1.2% as initially estimated.

(Reporting by Lucia Mutikani; Editing by ‌Andrea Ricci)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Bank of Canada head says fiscal policy not hitting fight against inflation
• European supermarkets rush to patch vulnerabilities after region-wide fridge hack
• Factbox-Europe-wide bomb threats disrupt air travel