September Factory Orders Show Big Gain

If you back out the volatile transportation orders, the September report would have been up by only 1.4%. On an ex-defense basis, the report was up 4.4%. It should also be noted that the month of August was revised to -5.1% from -5.2%.

Bloomberg said on today’s report:

Aircraft orders really distorted factory order data in September and August, with total orders rising 4.8% in the former and falling a revised 5.1% in the latter. A slightly more positive indication comes from the important category of nondefense capital goods excluding aircraft which shows a 0.2% gain for new orders following a 0.3% gain in August. But the gains do little to reverse July’s big 5.6% decline.

Again, this report should have little to no market impact since the market was focused on the unemployment report from earlier this morning.

JON C. OGG