Durable goods orders rose more than expected in September, up +9.9% versus a consensus forecast of +7.5%. The underlying components, however, were mixed, as the transportation component (mostly aircraft orders) made the largest contribution to results. Ex-transportation, orders were up +2%, and the ‘core’ capital orders measure was flat on the month. Shipments were relatively weak, with those for core goods only rising +0.9% and revised down a bit for earlier periods.
The Richmond Fed manufacturing index came in weaker than anticipated for October, at -7 versus +4 for September and lower than the forecast similar level of +5. The report’s composition was also softer, mostly in the areas of new orders and shipments; however, wages were improved slightly. Inflation also jumped to the highest levels in almost a year, a reflection on commodity price increases.