Orders for Manufactured Goods Rise in September

Washington, DC, Nov. 3, 2009--Orders for manufactured goods in the U.S. increased a seasonally adjusted 0.9% in September on gains in machinery, autos, defense goods and chemicals, the Commerce Department estimated Tuesday.

Factory orders have risen in five of the past six months, but are down 13.9% in the first nine months of 2009 compared with the same period a year ago.

Factory orders fell 0.8% in August and rose 1.4% in July.

September's 0.9% gain was stronger than the 0.6% increase expected by economists.

The report is consistent with other data showing the factory sector bouncing back from the worst recession since World War II.

Orders for durable goods increased an upwardly revised 1.4% in September, compared with the 1% gain estimated last week. Orders and shipments for nondurable goods increased 0.6%.

Shipments of manufactured goods rose 0.8%, the third increase in the past four months.

Inventories fell 1%, the 13th consecutive decline. The inventory-to-sales ratio fell to 1.36 in September from 1.38 in August, indicating manufacturing firms are making headway in reducing unwanted overstocks.

Details were mixed, with most sectors showing modest gains.