WASHINGTON - Orders placed with US factories rose in September for the fifth time in six months, reinforcing signs that manufacturing will drive the economic recovery.
Bookings increased 0.9 percent, exceeding the median forecast of economists surveyed by Bloomberg News, after dropping 0.8 percent in August, figures from the Commerce Department showed yesterday. Excluding demand for transportation equipment which tends to be volatile, orders climbed 0.8 percent after a 0.3 percent August gain.
A record plunge in stockpiles and a boost to exports, in part from more than $2 trillion in global stimulus, means companies will ramp up production.
Orders for durable goods, which make up just over half of total factory demand, increased 1.4 percent after a 2.7 percent drop the previous month. Bookings for nondurable goods, including food, petroleum, and chemicals, rose 0.6 percent.
The increase in demand for long-lasting goods was propelled by a 7.9 percent surge in bookings for machinery, the biggest gain since March 2008. Bookings for vehicles and parts climbed 0.6 percent.
Ford Motor Co. on Monday posted its first operating profit since early 2008.
Bookings for capital goods excluding aircraft and military equipment, a measure of future business investment, increased 1.8 percent after a 1 percent drop. Shipments of those goods, used to calculate gross domestic product, fell 0.2 percent after decreasing 2.2 percent.
The pickup in demand for capital goods signals business investment will probably strengthen this quarter and next. The economy expanded at a 3.5 percent pace in the third quarter after a yearlong contraction as government incentives spurred consumers to spend more, according to Commerce Department data released last week.
