By Greg Robb, MarketWatch Last Update: 9:07 AM ET Nov. 29, 2005
WASHINGTON (MarketWatch) - Orders for new U.S.-made durable goods rebounded in October after a sluggish September, led by demand for military equipment and transportation orders, especially aircraft.
Orders for durable goods increased 3.4% in October after falling a revised 2.0% in the previous month, initially reported as a 2.4% decline. Read full survey.
Excluding the transportation sector, durable goods orders rose 0.3% in October.
The gain in overall October orders was much larger than expected. Economists were expecting orders to rise 1.4%, according to a survey conducted by MarketWatch. See Economic Calendar.
Orders for core capital goods equipment rose 1.3% in October after falling 1.7% in the previous month.
Shipments of durable goods increased 1.4% in October to record high levels after remaining flat in September.
Inventories of durable goods rose 0.4% in October after a 0.1% gain in September. Inventories have risen in three of the past four months.
Unfilled orders of durable goods rose 1.5% after a 0.8% gain in September. This is the sixth straight monthly gain in unfilled orders.
Durable goods are long-lived products, such as airplanes, cars, washing machines and machine tools. Orders are carefully watched for clues about the direction of both consumer and business spending.
In October, orders for transportation equipment had the largest increase. Orders for defense aircraft rose 140.4%, the largest increase since June 2000.
Civilian aircraft orders rose 50.4%, as the machinists union ended a strike at Boeing Co.
Excluding the transportation sector, durable goods orders rose 0.3% in October.
Orders for defense capital goods rose 52.8%, the biggest gain since February 2002.
Excluding defense, durable goods orders rose 1.7%, after a 2.0% drop in September.
Orders for electronics, excluding semiconductors, fell 1.3%. Orders for computers fell 1.7%.
Orders for machinery increased 2.1% while shipments rose 1.2%.
Orders for electrical equipment decreased 3.5% while shipments rose 2.3%.
Orders for fabricated metals fell 0.5% while shipments rose 0.7%.
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