Factory Orders
LM Otero/AP
By Lucia Mutikani

WASHINGTON -- New orders for U.S. factory goods fell in October as demand for aircraft and capital goods weakened, suggesting some cooling in manufacturing.

The Commerce Department said Thursday orders for manufactured goods dropped 0.9 percent after rising 1.8 percent in September.

Economists polled by Reuters had forecast orders falling 1.0 percent in October.

Factory orders were weighed down by a 5.7 percent decline in transportation equipment as bookings for civilian and defense aircraft and parts tumbled.

Orders excluding the volatile transportation category were flat. The factory orders report adds to data such as durable goods orders and industrial production that have suggested a cooling in manufacturing activity.

But these so-called hard data on manufacturing are lagging sentiment surveys which have shown strength in factory activity in recent months.
Many economists view the sentiment surveys, including the Institute for Supply Management's report, as signaling a pickup in manufacturing next year.

The Commerce Department also said orders for durable goods, manufactured products expected to last three years or more, fell 1.6 percent instead of the 2.0 percent drop reported last week.

Orders for non-defense capital goods excluding aircraft -- seen as a measure of business confidence and spending plans -- slipped 0.6 percent in October instead of the previously reported 1.2 percent fall.

Unfilled orders of non-defense capital goods excluding aircraft increased 0.5 percent in October after rising 0.6 percent the prior month, a positive signal for manufacturing.

Overall manufacturing inventories rose 0.1 percent after advancing 0.3 percent in September. Manufacturing inventories are being closely watched for signs of slowdown after businesses piled up stock in their warehouses.


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alfredschrader

Funny the Chinese are running their plants 24/7 - so much so that the air in China is thick with smog.
So many people are shopping for Chinese manufactured goods at Wal Mart that the cashiers can't keep up with 30 check-out lines.

I've actually seen tax assessors come in with tape measures and calculate the area of a US business to the square inch of space for maximum taxing.
You can't suffocate US business with taxes and expect them to compete.
Collect income taxes on factory wages, sure - at least those people will have jobs.
You can't tax wages though, if the plants are shut down and there are thousands of plants collecting dust right now. It costs me more in taxes to build it than what I can buy a foot stool for in Wal Mart.
Did you know that nobody even manufactures a car alternator in the US ?

December 09 2013 at 11:35 AM Report abuse rate up rate down Reply
jdykbpl45

Just another example of how bad Obama and the democratrs have made the economy.

December 05 2013 at 3:42 PM Report abuse +1 rate up rate down Reply