Widget Image
Follow PPD Social Media
Monday, July 22, 2024
HomeNewsEconomyDurable Goods Orders Rise More than Forecast Even as Manufacturing Struggles

Durable Goods Orders Rise More than Forecast Even as Manufacturing Struggles


American workers at a manufacturing plant for long-lasting durable goods. (PHOTO: REUTERS)

The Commerce Department said Wednesday durable goods orders rose 4.8% in October, topping the median forecast calling for a rise of 1.5%. The government report on durable goods–long-lasting items built to last more than 3 years–continues to paint a rosier picture of the manufacturing sector than the private-sector regional and national reports conducted by the Federal Reserve and Institute for Supply Management (ISM).

Excluding the volatile transportation component, durable goods orders rose 1.0%, missing the estimate for a 0.2% rise.

The report said non-defense capital goods orders excluding aircraft, or the so-called core capital goods orders that are a closely watched proxy for business spending, rose 0.4% after a slightly downwardly revised 1.4% drop the month prior. So-called core capital goods orders were previously reported to have fallen 1.3% in September, though last month’s increase matched economists’ expectations.

It was taken by some analysts as an indication the manufacturing sector might slowly be regaining strength. President-elect Donald Trump has proposed a substantial infrastructure spending program, which if done correctly via the private sector, could be a boon to business investment on capital equipment. It would also be to the profit of companies like Caterpillar Inc. (NYSE:CAT) and their workers.

The heavy machinery manufacturer, which President-elect Trump vowed to keep in the U.S., last month lowered its full-year revenue outlook for the second time this year.

Written by

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Latest comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

People's Pundit Daily
You have %%pigeonMeterAvailable%% free %%pigeonCopyPage%% remaining this month. Get unlimited access and support reader-funded, independent data journalism.

Start a 14-day free trial now. Pay later!

Start Trial