Durable-goods orders rise

Associated Press

WASHINGTON

A surge in demand for commercial aircraft lifted orders for big-ticket manufactured goods in September, but businesses spent less on products that would signal expansion.

The Commerce Department says orders for durable goods rose 3.3 percent last month. Overall, it was the best showing since January. But excluding transportation, orders fell 0.8 percent after having risen 1.9 percent in August.

And spending by companies on capital goods excluding aircraft dropped 0.6 percent after rising 4.8 percent in August. The category, which is viewed as a good proxy for business investment in the economy, has declined in two of the past three months.

The new report suggests manufacturing is moving forward but at a slower pace than earlier this year.

Factories helped boost the economy after the recession ended, filling orders from businesses that moved to rebuild their stockpiles after slashing them during the downturn. That trend has since slowed.

Sal Guatieri, a senior economist with BMO Capital Markets, said: “The next leg of the recovery will increasingly rest on the shoulders of consumers.”

Businesses’ capital spending on equipment has been one of the bright spots so far in the recovery. It grew at double-digit annual rates since the final three months of last year.

The biggest decline in September was in orders for communications equipment. They fell 18.6 percent. Orders for primary metals such as steel dropped 0.5 percent. Orders for computers and related electronic products rose 2 percent, and orders for heavy machinery advanced 2 percent.

Demand for transportation equipment jumped 15.7 percent, the best showing since January. It is a very volatile category that had fallen by 8.8 percent in August.