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

Of Durable Goods Orders (and How to Buy an Election)

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