Factory orders rise but still point to weak investment

WASHINGTON Fri Nov 2, 2012 10:05am EDT

A Boeing 787 sits on the assembly line at the company's operations in Everett, Washington, October 18, 2012. REUTERS/Andy Clark

A Boeing 787 sits on the assembly line at the company's operations in Everett, Washington, October 18, 2012.

Credit: Reuters/Andy Clark

WASHINGTON (Reuters) - Demand for U.S. factory goods rose in September by the most in over a year, although a gauge of business investment plans pointed to lackluster momentum in the economic recovery despite a slight upward revision.

New orders for manufactured goods climbed 4.8 percent, the Commerce Department said on Friday. That was just higher than analysts' expectations and the biggest gain since March 2011.

The increase was driven by a sharp gain in volatile aircraft orders that was telegraphed in last week's report on orders for long-lasting manufactured goods.

Excluding transportation, orders rose 1.4 percent in September.

Manufacturing has been a major support for the recovery since the 2007-09 recession but activity has cooled significantly in recent months.

The government revised previous estimates for orders for non-defense capital goods excluding aircraft -- seen as a measure of business confidence and spending plans -- to show a 0.2 percent increase in September.

That's higher than the flat reading previously reported but still suggests businesses have lost some confidence in the strength of the economic recovery.

Orders for transportation equipment surged 31.3 percent in September.

Orders for non-durable goods rose 1.0 percent in September after a 2.2 percent rise the prior month.

(Reporting by Jason Lange; Editing by Andrea Ricci)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article 

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.