Orders for US-made durable goods unexpectedly increased by 0.8% in September, the fourth such increase in the last five months, according to the Commerce Department’s monthly M3 Report. It was pushed higher by strong demand for transportation goods, offsetting weaker demand in other sectors, as many businesses grew more cautious in their outlook. Economists were expecting a decline of 1.0% for the month.

Report Details

Excluding transportation, durable goods orders fell 1.1%. Excluding civilian aircraft, orders fell 0.3%.

Orders for core capital equipment, equipment businesses invest in to expand or update their productive capacity, fell 1.4% after a 2.2% decline in August. Core capital equipment orders, which exclude aircraft and non-defense goods, are the best monthly indicator of capital expenditures.

Via MarketWatch:

Transportation goods orders rose 6.3% after a 9.3% drop in August. Orders for civilian aircraft rose 29.7% after a 37.7% drop. Orders for vehicles rose 3% after an 8.8% decline. Orders for defense aircraft rose 10.1% after an 11.7% drop. Shipments of transportation goods rose 2%.

Orders for machinery rose 0.5% after a 6.4% decline. Shipments of machinery jumped 4.3%.

Orders for electronics, excluding semiconductors, fell 1.4% after a 2% gain. Orders for computers fell 2.8%. Orders for communication equipment fell 14.6%. Shipments of electronics, including semiconductors, dropped 2.1%.

Orders for electrical goods increased 1.5% after a 3.5% decline. Shipments of electrical goods fell 0.2%.

Orders for primary metals fell 4.5%, while shipments dropped 3.2%. Orders for fabricated metals fell 0.9% while shipments fell 0.2%.

Orders for durable goods are down 1.8% from the previous September. Shipments are off 0.6%.

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