U.S. factory orders rise slightly more than expected in September

The U.S. Commerce Department reported on Tuesday that the value of new factory orders rose 1.1 percent m-o-m in September, following a revised 0.6 percent m-o-m advance in August (originally a 0.7 percent m-o-m increase). That marked the fifth consecutive month of gains in factory orders.

Economists had forecast a 1.0 percent m-o-m increase.

According to the report, orders for transportation equipment increased 4.1 percent m-o-m in September compared to a 0.9 percent m-o-m drop in August. Gains also occurred in fabricated metal products (+1.2 percent m-o-m) and computers and electronic products (+0.6 percent m-o-m). These increases, however, were partially offset by a decline in new orders for machinery (-0.3 percent m-o-m).

Meanwhile, total factory orders excluding transportation, a volatile part of the overall reading, rose 0.5 percent m-o-m in September (compared to an upwardly revised 0.9 percent m-o-m surge in August), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, increased 1.0 percent m-o-m (compared to an upwardly revised 2.4 percent m-o-m surge in the previous month). The report also showed that shipments of core capital goods rose 0.5 percent m-o-m in September, rather than gaining 0.3 percent m-o-m as previously reported.

Overall, durable goods orders rose 1.9 percent m-o-m in September, while orders for nondurable goods grew 0.3 percent m-o-m.