New orders for manufactured goods rose in September, according to the U.S. Census Bureau. NAM Chief Economist Chad Moutray gave us a rundown of what happened and what it means.
The topline: “New orders for manufactured goods rose 0.2% from $514.6 billion in August to a record $515.9 billion in September, increasing for the fifth straight month, albeit at a slower pace,” said Moutray.
Manufacturing grows despite supply chain woes: “Orders for nondefense aircraft and parts, which can be highly volatile from month to month, fell 27.9% in September, with motor vehicle and parts sales also lower, down 1.9% due to the chip shortage and production challenges,” said Moutray.
- “Excluding transportation equipment, manufacturing orders increased 0.7% in September, with new durable goods orders excluding transportation up 0.5%. Overall, the manufacturing sector continues to expand strongly—despite lingering supply chain, workforce and pricing pressures—with new orders soaring 10.2% year to date.”
Capital goods spending increases: “In addition, new orders for core capital goods (or nondefense capital goods excluding aircraft)—a proxy for capital spending in the U.S. economy—rose 0.6% from $77.1 billion in August to $77.8 billion in September, a record high. Core capital goods orders have risen 8.6% through the first nine months of 2021.”