Washington, DC, December 6, 2005--Orders for factory goods increased 2.2% in October, more than reversing a decline in September, the Commerce Department estimated Tuesday.
Factory orders fell 1.4% in September.
The increase in October factory orders was roughly in line with what was expected by economists.
Strong demand for durable goods fueled the October increase. Orders for durable goods were revised up to a 3.7% gain in October, from last week's preliminary estimate of 3.4%.
Orders and shipments for nondurable goods increased 0.5%.
Shipments of factory goods rose 1.0% in October. Inventories increased 0.6%, while unfilled orders rose 1.6%.
Orders are up 7.7% in the past year. The data are not adjusted for price changes.
Shipments of factory goods increased 1.0% in October after a 0.4% fall in September. Shipments of durable goods rose 1.5%. Shipments are up 7.1% in the past year.
Inventories increased 0.6%, the second gain in a row. The inventory-to-sales ratio fell to 1.17. Unfilled orders increased 1.6%. the sixth straight monthly increase.
Orders for core capital goods - a key metric for business investment - increased 1.4% in October after a 1.8% contraction in September. Shipments of core capital goods rose 1.8% in October after a 0.6% drop in September. In the past year, core capital goods orders are up 10.8%, while shipments are up 10.3%
