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Economists at Econoday expected a 0.7% decline in durable goods orders in October. Instead, orders rose 0.6% but from negative revisions.

The Census Bureau revised September from -1.1% to -1.4% and defense spending did the rest.

New Orders

New orders for manufactured durable goods in October increased $1.5 billion or 0.6 percent to $248.7 billion, the U.S. Census Bureau announced today. This increase, up four of the last five months, followed a 1.4 percent September decrease. Excluding transportation, new orders increased 0.6 percent. Excluding defense, new orders increased 0.1 percent. Fabricated metal products, up two of the last three months, led the increase, $0.6 billion or 1.8 percent to $34.1 billion.

Shipments

Shipments of manufactured durable goods in October, up following three consecutive monthly decreases, increased less than $0.1 billion or virtually unchanged to $251.6 billion. This followed a 0.7 percent September decrease. Machinery, up two of the last three months, drove the increase, $0.3 billion or 1.0 percent to $33.1 billion.

Unfilled Orders

Unfilled orders for manufactured durable goods in October, up three of the last four months, increased $1.4 billion or 0.1 percent to $1,164.8 billion. This followed a virtually unchanged September decrease. Transportation equipment, up four consecutive months, led the increase, $0.9 billion or 0.1 percent to $795.5 billion.

Inventories

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Inventories of manufactured durable goods in October, up fifteen of the last sixteen months, increased $1.4 billion or 0.3 percent to $432.0 billion. This followed a 0.5 percent September increase. Transportation equipment, also up fifteen of the last sixteen months, drove the increase, $1.8 billion or 1.3 percent to $147.4 billion.

Capital Goods

Nondefense new orders for capital goods in October increased $2.2 billion or 3.2 percent to $73.3 billion. Shipments increased $1.0 billion or 1.4 percent to $75.1 billion. Unfilled orders decreased $1.8 billion or 0.3 percent to $688.2 billion. Inventories increased $1.4 billion or 0.7 percent to $195.8 billion. Defense new orders for capital goods in October increased $2.3 billion or 16.6 percent to $16.2 billion.

Shipments

increased $0.2 billion or 1.2 percent to $13.0 billion. Unfilled orders increased $3.2 billion or 2.0 percent to $161.4 billion. Inventories increased $0.4 billion or 1.5 percent to $24.3 billion.

Military Spending

Military spending led the increase in orders and the surge in capital goods as well.

Hooray?!

Mike "Mish" Shedlock