WASHINGTON (dpa-AFX) - Largely reflecting a surge in orders for transportation equipment, the Commerce Department released a report on Tuesday showing new orders for U.S. manufactured durable goods shot up by more than expected in the month of September.
The Commerce Department said durable goods orders jumped by 1.8 percent in September following a revised 0.1 percent uptick in August.
Economists had expected durable goods orders to grow by 1.4 percent compared to the 0.1 percent dip that had been reported for the previous month.
The sharp increase in durable goods orders came as orders for transportation equipment spiked by 4.6 percent in September after slipping by 0.3 percent in August.
Orders for non-defense aircraft and parts led the way higher, skyrocketing by 28.4 percent in September after rising by 0.3 percent in August.
Excluding the surge in orders for transportation equipment, durable goods orders climbed by 0.5 percent in September after rising by 0.3 percent in August. Ex-transportation orders were expected to increase by 0.6 percent.
The report showed notable growth in orders for machinery and computers and electronic products, while orders for electrical equipment, appliances and components fell.
The Commerce Department also said orders for non-defense capital goods excluding aircraft, a key indicator of business spending, increased by 0.5 percent in September after jumping by 1.6 percent in August.
Shipments in the same category, which is the source data for equipment investment in GDP, shot up by 1.2 percent in September after climbing by 0.6 percent in August.
'Durable goods orders were strong, with core orders tied to the AI buildout and a global defense buildup showing no sign of a slowdown,' said Bernard Yaros, Deputy Chief US Economist at Oxford Economics.
He added, 'Core orders are forward-looking and reinforce our baseline for a still-strong pace of equipment investment heading into Q4 and 2027.'
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