U.S. Factory Orders Rebound on Transportation

Washington, Safar 21, 1437, Dec 3, 2015, SPA– New orders for American factory goods rebounded in October after two straight months of decline, the government said Thursday, but manufacturing remains crippled by a strong dollar and spending cuts in the energy sector.
The Commerce Department reported that new orders for manufactured goods increased 1.5 percent on rising demand for transportation equipment and a range of other goods. Orders in September were revised to show them falling 0.8 percent instead of the previously reported 1.0 percent drop.
Economists had forecast orders climbing 1.4 percent in October. The dollar has gained 18.6 percent against the currencies of main U.S. trading partners since June 2014, which has eroded export growth and undercut the profits of multinationals.
In October, orders for transportation equipment increased 7.9 percent, largely reflecting a rise in aircraft orders. They had dropped 2.2 percent in September. Motor vehicle orders fell 2.1 percent.
Shipments of non-defense capital goods, which are used to calculate business equipment spending in the gross domestic product (GDP) report, dropped 0.5 percent in October as opposed to the 0.4 percent decline reported last month.

–SPA
19:18 LOCAL TIME 16:18 GMT