U.S. Factory Orders Show Steep Drop In October

A report released by the Commerce Department on Thursday showed a steep drop in new orders for U.S. manufactured goods in the month of October.

The Commerce Department said factory orders tumbled by 2.1 percent in October after rising by a downwardly revised 0.2 percent in September.

Economists had expected factory orders to slump by 2.0 percent compared to the 0.7 percent increase originally reported for the previous month.

Durable goods orders led the way lower during the month, plunging by 4.3 percent amid a 12.0 percent nosedive in orders for transportation equipment.

Meanwhile, the report showed a continued increase in orders for non-durable goods, which rose by 0.3 percent in November.

The Commerce Department also said shipments of manufactured goods fell for the first time in sixteen months, edging down by 0.1 percent in October after climbing by 0.7 percent in September.

Inventories of manufactured goods increased for the twenty-fourth consecutive month, inching up by 0.1 percent in October after rising by 0.6 percent in September.

With inventories and shipments both showing only modest moves, the inventories-to-shipments ratio was unchanged from the previous month at 1.34.

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