Courtesy of Mish.
Thanks to motor vehicles and parts, factory orders rose 0.3% in September according to a Commerce Department report on Manufacturers’ Shipments, Inventories, and Orders.
The Commerce Department revised August from +0.2% to +0.4% also because of motor vehicles and parts, making the effective jump a substantial 0.5%.
The good news stops right there. Capital good and core capital goods new orders look ominous.
Capital Goods are tangible assets such as buildings, machinery, equipment, vehicles and tools that an organization uses to produce goods or services in order to produce consumer goods and goods for other businesses.
Core Capital Goods
Core capital goods orders, a leading indicator of future growth, are defined as non-defense, non-aircraft capital goods orders.
Core capital orders fell 1.3% for the month following an august revision from +0.6% to +1.2%. Core capital orders are a measure of business investment.
This report was widely expected, at least it should have been from the Advance Reports so there should be little additional impact on third quarter GDP, but there will be an impact that we have not yet seen.
