US factory orders up 2.7 per cent in October
WASHINGTON — Orders to U.S. factories rose in October by the largest amount in 16 months but a key category that tracks business investment posted an anemic gain.
Factory orders increased 2.7 per cent in October, the best showing since a 2.9 per cent rise in June 2015, the Commerce Department said Tuesday. The strength came from a 93.8 per cent surge in the volatile category of commercial aircraft. A category that serves as a proxy for business investment edged up just 0.2 per cent following a 1.5 per cent drop in September.
U.S. manufacturers have struggled for much of this year, having to deal with the impact of a strong dollar, which makes their exports more expensive in overseas markets, and big cutbacks in investment spending by energy companies in the wake of falling oil prices.
Orders for durable goods, items expected to last at least three years, rose 4.6 per cent, slightly lower than an advance report which had put the gain at 4.8 per cent. Orders for nondurable goods such as chemicals, food and paper were up 0.9 per cent in October, matching the September increase.