Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

U.S. factory orders post largest drop in more than a year

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/06/2018 | 11:16am EST
Steel coils at the ThyssenKrupp Steel USA factory are pictured in Calvert

WASHINGTON, Dec 6 (Reuters) - New orders for U.S.-made goods recorded their biggest drop in more than a year in October and business spending on equipment appeared to be softening, suggesting a slowdown in activity in the manufacturing sector.

Factory goods orders fell 2.1 percent amid a decline in demand for a range of goods, the Commerce Department said on Thursday. That was the largest decrease in orders since July 2017. Data for September was revised lower to show factory orders rising only 0.2 percent instead of the previously reported 0.7 percent increase.

Economists polled by Reuters had forecast factory orders declining 2.0 percent in October. Orders increased 8.3 percent on a year-on-year basis in October.

An Institute for Supply Management survey of manufacturers published on Monday showed an improvement in business conditions in November. Manufacturers across nearly all industries, however, complained that worker shortages and the Trump administration's import tariffs were disrupting operations.

In October, orders for transportation equipment tumbled 12 percent, the biggest drop since October 2017, reflecting a 59.3 percent plunge in orders for defense aircraft and parts. Transportation equipment orders rose 0.9 percent in September.

Orders for civilian aircraft and parts dropped 22.2 percent in October. Orders for motor vehicles slipped 0.1 percent.

There were also declines in orders for primary metals and machinery. But orders for computers and electronic products rose, as did those for fabricated metal products and electronic equipment, appliances and components.

The Commerce Department also said October orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, were unchanged, as reported last month. Orders for these so-called core capital goods dropped 0.6 percent in September.

Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, rose 0.3 percent in October, as reported last month.

Core capital goods shipments fell 0.3 percent in September. Business spending on equipment has slowed since the second quarter after strong growth in 2017 and early 2018. This is despite the White House's $1.5 trillion tax cut.

Some companies including Apple used their tax windfall to buy back shares on a massive scale. Spending on equipment could also be undercut by declining oil prices.

(Reporting by Lucia Mutikani Editing by Paul Simao) ((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters Messaging: lucia.mutikani.thomsonreuters.com@reuters.net)

Stocks mentioned in the article
ChangeLast1st jan.
APPLE -0.22% 170.42 Delayed Quote.8.04%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
04:16pNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
04:03pCITT CANADIAN INTERNATIONAL TRADE TRIBUNAL : Cold-rolled steel
PU
04:01pItaly starts talks with EU over bank bad loan scheme renewal - source
RE
03:48pECOSOC UNITED NATIONS ECONOMIC AND SOCIAL COUNCI : New Permanent Representative of Brunei Darussalam Presents Credentials
PU
03:48pECOSOC UNITED NATIONS ECONOMIC AND SOCIAL COUNCI : New Permanent Representative of Mauritania Presents Credentials
PU
03:48pECOSOC UNITED NATIONS ECONOMIC AND SOCIAL COUNCI : New Permanent Representative of Mexico Presents Credentials
PU
03:48pECOSOC UNITED NATIONS ECONOMIC AND SOCIAL COUNCI : New Permanent Representative of Lesotho Presents Credentials
PU
03:48pECOSOC UNITED NATIONS ECONOMIC AND SOCIAL COUNCI : New Permanent Observer for Economic Community of Central African States Presents Letter of Appointment
PU
03:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
03:16pNEWS HIGHLIGHTS : Top Company News of the Day
DJ
Latest news "Economy & Forex"
Advertisement