MW: Durable-goods orders see jet-fueled 4.8% gain in October
Orders for long-lasting goods made in the U.S. soared 4.8% in October largely because of stronger demand for commercial aircraft, but business investment is still not showing much spark.
The increase in new orders for durable goods — the fourth in a row — topped the 3.3% estimate of economists surveyed by MarketWatch.
A slew of fresh bookings for Boeing helped spur a 94.1% spike in new orders for passenger planes, Commerce Department data show. Aircraft orders often swing sharply from month to month and can obscure trends in business spending.
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Demand for new autos slipped 0.6%.
If the aircraft and auto industries are omitted, orders for durable goods increased a much smaller 1% in October.
A key measure of business investment known as core capital-goods orders, meanwhile, rose a modest 0.4% in October after a big drop in the prior month.
Although these orders have picked up slightly in the fall, they are 4% lower compared to a year ago. Businesses have skimped on investment for years, undermining the ability of the U.S. economy to break out of a straitjacket that has limited it to 2% annual growth or less.
Shipments of core capital goods, a category used to help determine gross domestic product, edged up 0.2% in October.
In September, orders for durable goods were revised up to show a 0.4% gain instead of a small decline.
