US factory orders beat expectations in September amid broad strength
SPY•US factory orders rose 1.8% in September, above economists’ 1.2% forecast, after an upwardly revised 0.3% gain in August. Orders were up 7.2% year over year, led by a 28.3% jump in civilian aircraft bookings.
1. Orders rise in September
New orders for US factory goods increased 1.8% in September after an upwardly revised 0.3% gain in August. Economists had forecast a 1.2% rise, and orders were up 7.2% from a year earlier.
2. Aircraft bookings lead gains
Bookings for civilian aircraft and parts jumped 28.3%. Machinery orders rose 1.5%, while orders for computers and electronic products gained 0.8% and were up 14.9% year over year. Orders for electrical equipment, appliances and components fell 0.3%.
3. Capital goods orders advance
Orders for non-defense capital goods excluding aircraft increased 0.6%, revised from the previously reported 0.5% rise. Shipments of these core capital goods climbed 1.2%, as initially estimated. Economists have cautioned that rising interest rates and declining inflation-adjusted household income could hamper manufacturing activity next year.
