U.S. Factory Orders Rebound Marginally in October

WASHINGTON (Reuters) – New orders for U.S.-manufactured goods saw a slight increase in October, despite signs of softer business spending on equipment early in Q4.

Factory orders rose by 0.2% after a revised 0.2% decline in September, according to the Commerce Department's Census Bureau. Economists had forecast a rebound of 0.2%, following a previously reported 0.5% decline in September. Year-on-year, factory orders increased by 0.4% in October.

The government reported that non-defense capital goods orders, excluding aircraft—which gauge business spending plans—fell by 0.2% in October, consistent with initial estimates. Shipments of core capital goods were up 0.3%, revising the prior estimate from 0.2%.

Orders for non-defense capital goods climbed 1.5% instead of an initially reported 1.4%. However, shipments of these goods declined by 1.8%, revising down from 1.9%. This decline indicates a trend of softer business investment in equipment for Q4, following two months of robust growth.