U.S. factory orders beat expectations in October




  • In US
  • 2022-12-05 15:30:41Z
  • By Reuters
 

WASHINGTON (Reuters) - New orders for U.S.-manufactured goods increased more than expected in October amid strong gains in demand for machinery and a range of other goods, which could allay concerns of a sharp slowdown in manufacturing.

The Commerce Department said on Monday that factory orders jumped 1.0% after rising 0.3% in September. Economists polled by Reuters had forecast orders advancing 0.7%. Orders shot up 12.8% on a year-on-year basis in October.

The Federal Reserve's fastest rate-hiking cycle since the 1980s as it battles inflation is dampening demand for goods, undercutting manufacturing, which is also being squeezed by the rotation of spending back to services.

An Institute for Supply Management survey last week showed its measure of the nation's factory activity contracted in November for the first time in 2-1/2 years.

Manufacturing accounts for 11.3% of the U.S. economy. October's jump in factory orders was driven by a 2.2% rise in bookings for transportation equipment, which followed a 2.3% increase in September. Transportation equipment orders were boosted by increases in orders for both defense and civilian aircraft. Motor vehicle orders rebounded 1.7%.

Orders for machinery rose 1.5%. There were also solid gains in orders for computers and electronic products as well as electrical equipment, appliances and components.

The Commerce Department 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 October, instead of 0.7% as reported last month.

Shipments of these so-called core capital goods, which are used to calculate business equipment spending in the gross domestic product report, rose 1.5%. They were previously reported to have jumped 1.3% in October.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

COMMENTS

More Related News

Stock Bull Pain Threshold Swells to Pandemic Size in New Market Run-Up
Stock Bull Pain Threshold Swells to Pandemic Size in New Market Run-Up

(Bloomberg) -- Anyone who lived through the 2020 bull market knows: investors, especially of the retail ilk, can stomach a lot of pain. However dark is the...

Stocks Extend Fed-Fueled Rise in Asia; Dollar Dips: Markets Wrap
Stocks Extend Fed-Fueled Rise in Asia; Dollar Dips: Markets Wrap

(Bloomberg) -- Asian shares advanced with US and Europe futures on Thursday, extending a rally on Wall Street after Federal Reserve Chair Jerome Powell said ...

Bitcoin Jumps to Highest Since August in Post-Fed Crypto Rally
Bitcoin Jumps to Highest Since August in Post-Fed Crypto Rally

(Bloomberg) -- Bitcoin hit the highest since August as investors interpreted Federal Reserve Chair Jerome Powell's comments about progress on inflation as a ...

Risk-Hungry Investors See Powell
Risk-Hungry Investors See Powell's Nod as Green Light for Emerging Markets Rally

(Bloomberg) -- Emerging markets lit up green as Federal Reserve Chair Jerome Powell nodded at the progress made against US inflation, adding fuel to Wall...

Fed Rate Hike Smallest Since March 2022: Inflation Eases but Remains Elevated
Fed Rate Hike Smallest Since March 2022: Inflation Eases but Remains Elevated

As was expected, the Federal Reserve dialed back its hike, unanimously stating on Feb. 1 that it would raise interest rates by a quarter point for its first ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US