Big Gains for US Factory Orders

Big Gains for US Factory Orders

New orders for U.S. manufactured goods rose a fourth consecutive month, with civilian aircraft orders almost doubling, the Commerce Department reported on Tuesday (Dec 6).

But without the transportation sector, which has also risen four months in a row, the increase would have been only 0.8 percent, according to the department. The strength came from a 93.8 percent surge in the volatile category of commercial aircraft.

Excluding transport, there was a 0.7% monthly increase following a 0.6% gain for September with orders declining 2.6% over the year.

Orders for durable goods rose a revised 4.6% in October compared with the prior estimate of a 4.8% gain.

For the first 10 months of the year, however, orders were 2.0 percent lower than the same period in 2015. Multiple news organizations reported that the gain represents the largest increase in factory orders in 16 months.

Economists are forecasting that manufacturing may start seeing better days with energy prices now rising again.

Stronger output in manufacturing would help support overall economic growth.

Analysts expect the economy will expand at a 2 percent rate in the current quarter.

A Reuters report said the report "added to factory surveys in suggesting an upturn in manufacturing" but warned that "despite signs of stability, progress is likely to be limited by renewed dollar strength in the wake of Donald Trump's victory" in the recent usa presidential election.

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