The value of new factory orders rose 0.7% in September, above the 0.5% increase expected by analysts in an MNI survey, data released by the Commerce Department Friday morning showed.
Durable goods orders were revised down slightly to a 0.7% gain from the 0.8% increase reported in the advance estimate. Nondurable goods orders rose 0.6% on gains in petroleum and coal, chemical products, and plastics and rubber products. Nondurable goods new orders are equivalent to nondurable goods shipments in this report.
Factory orders excluding transportation were up 0.4% in the month following a 0.4% gain in August, continuing the string of gains that stretches back virtually uninterrupted for most of the past two years. Durables orders excluding transportation were revised down to a flat reading from the 0.1% gain in the advance report.
In addition, unfilled orders were +0.8% in September, showing steadily growing demand for products.
Transportation orders were up 1.9% in September, unrevised from the advance estimate. The unlisted transportation components were down 2.4% in the month, based on an MNI calculation.
Nondefense capital goods new orders fell by 2.3%, however they were down only 0.1% when excluding aircraft.
Factory inventories rose by 0.5% in September. In addition to this, the Commerce Department's advance report on inventories showed a 0.3% gain for wholesale inventories and a 0.1% rise in retail inventories.
While these data are eligible for revision, the levels as they stand now, combined with the 0.5% increase in factory inventories, would result in a 0.3% gain in September business inventories when that report is released on November 15, an MNI calculation showed. The revised wholesale data for September will be released on November 9 and could alter this projection.
Overall factory shipments were up 0.9% in the month on a 1.2% increase for durable goods shipments, complimented by a 0.6% rise in nondurable shipments. Nondefense capital goods shipments posted a gain of 2.6%, but were down 0.1% after excluding the civilian aircraft component.
Given the mix of inventories and shipments reported Friday, the inventory-to-shipments ratio fell to 1.33 in September from 1.34 in August.
