Factory Goods Orders Expanded in October

Washington, DC, Dec. 4, 2009--Orders for U.S. manufactured goods expanded in October for the sixth month out of the past seven, the Commerce Department reported Friday.

Factory orders increased 0.6% in October, better than the no-change expected by economists.

September's orders were revised higher by half of a percent to 1.6%.

Economists had been expecting little change in factory orders after the government reported last week that orders for durable-goods decreased 0.6% in October.

But orders for non-durable goods were much stronger than expected in October, jumping 1.6%.

Economists are generally upbeat about the factory sector as the U.S. economy recovers and the value of the dollar makes U.S. exports competitive in global markets.

Inventories rose 0.4% in October, the first gain after 13 straight monthly declines.

Excluding transportation goods, factory orders rose 0.5%. Excluding defense goods, orders rose 1.1%.