Durable Goods Orders Unexpectedly Rise

October 29th, 2008 at 09:23am Bob Trojan

New orders for long-lasting manufactured goods rose unexpectedly in September by 0.8 percent, led by surging demand for defense goods and transportation equipment, the Commerce Department said on Wednesday.

The jump in orders for durable goods - items intended to last three years or more - followed a 5.5 percent drop in August, previously reported as a 4.8 percent decline.

Wall Street economists surveyed by Reuters had forecast a 1.2 percent decline in September orders.

Orders for defense capital goods increased 19.6 percent in September, the largest since December 2007, after increasing 8.4 percent in August.

Transportation orders jumped 6.3 percent, including a 3 percent gain for autos and auto parts — the biggest jump since July 2007.

Excluding transportation, September durables orders were down 1.1 percent after falling 4.1 percent in August.

Non-defense capital goods excluding aircraft, seen as a barometer of business spending plans, fell 1.4 percent after decreasing 2.2 percent in August.

(Reporting by Doug Palmer, Editing by Neil Stempleman) Washington, Reuters

Entry Filed under: Economy