U.S. factory orders rise as forecast in October

The U.S. Commerce Department reported on Thursday that the value of new factory orders rose 0.3 percent m-o-m in October, following a revised 0.8 percent m-o-m decrease in September (originally a 0.6 percent m-o-m drop).

Economists had forecast a 0.3 percent m-o-m gain.

According to the report, orders for transportation equipment jumped 0.7 percent m-o-m in October after declining 3.2 percent m-o-m in September. Orders for computers and electronic products rose 0.6 percent m-o-m, and machinery orders went up 1.2 percent m-o-m after edging down 0.1 percent m-o-m in September. Meanwhile, orders for electrical equipment, appliances and components decreased 1.8 percent m-o-m after advancing 0.9 percent m-o-m in September.

Total factory orders excluding transportation, a volatile part of the overall reading, increased 0.2 percent m-o-m in October (compared to a downwardly revised 0.3 percent m-o-m fall in September), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, climbed 1.1 percent m-o-m (instead of surging 1.2 percent m-o-m as reported last week). The report also showed that shipments of core capital goods surged 0.8 percent m-o-m in October, the same as previously reported.

In y-o-y terms, factory orders decreased 0.4 percent in October.