(RTTNews) - New orders for manufactured durable goods rebounded in September, according to a report released by the Commerce Department on Wednesday, with the increase due in large part to a jump in orders for machinery.

The report showed that durable goods orders rose 1.0 percent in September following a 2.6 percent decrease in August. The increase in orders came in line with economist estimates.

Orders for machinery increased for the fifth time in six months, jumping 7.9 percent in September after edging up by 0.8 percent in August.

The report also showed a rebound in orders for transportation equipment, which increased by 1.1 percent in September after falling by 9.1 percent in the previous month. Orders for defense aircraft and parts showed a notable increase.

Excluding the increase in orders for transportation equipment, durable goods orders still rose 0.9 percent in September compared to a 0.4 percent decrease in August. Economists had been expecting ex-transportation orders to increase by 0.7 percent.

Additionally, the report showed that orders for non-defense capital goods, excluding aircraft, which is seen as a good indicator of business spending, rose 2.0 percent in September following a 0.8 percent decrease in August.

The Commerce Department also said that shipments of durable goods increased by 0.8 percent in September following a 1.4 percent decrease in August. With the increase, shipments have risen in three of the last four months.

Peter Boockvar, equity strategist for Miller Tabak, noted that shipments, which get directly plugged into the GDP calculation, are up for the third quarter and will contribute to the expected rebound in third quarter GDP.

The report also showed that inventories of durable goods fell for the ninth consecutive month, falling by 1.0 percent in September after falling by 1.5 percent in August.

“The moderation in the inventory decline in the third quarter relative to the second quarter will also provide a statistical boost to third quarter GDP,” Boockvar said.

However, he added, “The third quarter GDP rebound is old news now and thus sustainability is the open question.”

The Commerce Department is due to release its advance report on third quarter GDP Thursday morning, with economists expecting the report to show that the U.S. economy expanded by 3.2 percent following four consecutive quarters of contraction.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Economy, Forex, Releases, USA.

Subscribe by RSS Subscribe by Email