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US factory orders dropped at slower than expected pace in October 2017

The US factory orders dropped in October, but at a slower than expected pace. This brings some peace of mind to the state of the industry, which generates about 12% of US gross domestic product (GDP). The statistics show that the fall is within 0.1% and expectations were for a fall of 0.4%.

October’s small decline in factory orders reflected an 18.5% drop in demand for civilian aircraft and a 7.6% drop in demand for defense aircraft. Excluding the volatile aircraft category, orders for non-defense capital goods — a measure of business spending plans — rose 0.3% in October.

So-called core capital goods orders surged 2.3% in September. The Commerce Department initially estimated a 0.5% decline in October.

The orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans, rose 0.3% in October instead of the 0.5% drop reported last month.

In addition, September data are revised upwards: from 1.4 to 1.7% growth.

These data remain consistent with a solid upswing in manufacturing activity and an acceleration in corporate capital spending. Excluding the transport sector, factory orders grew by 0.8% in October versus 1.1% in September.

Despite the small drop in October, US manufacturers are growing rapidly. Orders are up 5.6% through the first 10 months of 2017 compared to the same period a year earlier. factory shipments, meanwhile, rose 0.4% to mark the fifth gain in six months.

About James McGovern

James McGovern is from Arizona, USA. He is business analyst and writer at Finance Apprise Journal, responsible for finance and trading sections, as well as news from USA and Canada.

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