New orders for US-made goods fell 0.10 per cent in October and shipments of core capital goods were much stronger than previously reported, the Commerce Department has said.
Factory goods orders dipped 0.1 per cent amid a drop in demand for both civilian and defense aircraft after an upwardly revised 1.7 per cent jump in September, reports Reuters.
Economists had forecast factory orders falling 0.4 per cent in October after a previously reported 1.4 per cent increase in the prior month.
Orders for non-defense capital goods excluding aircraft -seen as a measure of business spending plans - rose 0.3 per cent in October instead of the 0.5 per cent drop reported last month.
These so-called core capital goods orders surged 2.3 per cent in September. Shipments of core capital goods advanced 1.1 per cent in October instead of the previously reported 0.4 per cent rise.
Core capital goods shipments increased 1.3 per cent in September. October’s upward revision to core capital goods shipments prompted forecasting firm Macroeconomic Advisers to boost its fourth-quarter GDP growth estimate by two-tenths of percentage point to a 2.7 per cent annualised rate.
Economists at Barclays lifted their forecast to a 2.5 per cent pace from a 2.4 per cent rate. The economy grew at a 3.3 per cent pace in the third quarter.
