Factory Goods Orders Expanded in October

Washington, DC, Dec. 4, 2009–Orders for U.S. manufactured goods expanded in October for the sixth month out of the past seven, the Commerce Department reported Friday.

Factory orders increased 0.6% in October, better than the no-change expected by economists.

September’s orders were revised higher by half of a percent to 1.6%.

Economists had been expecting little change in factory orders after the government reported last week that orders for durable-goods decreased 0.6% in October.

But orders for non-durable goods were much stronger than expected in October, jumping 1.6%.

Economists are generally upbeat about the factory sector as the U.S. economy recovers and the value of the dollar makes U.S. exports competitive in global markets.

Inventories rose 0.4% in October, the first gain after 13 straight monthly declines.

Excluding transportation goods, factory orders rose 0.5%. Excluding defense goods, orders rose 1.1%.