Mubasher: Demand on US-manufactured products rose more than expected in September, but weakening business expenditure on equipment indicated that the manufacturing sector growth could be slowing.

New orders on factory goods increased 0.7% to $515.3 billion in September, boosted by strong demand for transportation equipment, compared with August’s upwardly revised 2.6%, rising 8.4% year-on-year, the US Census Bureau said on Friday.

Meanwhile, analysts polled by Thomson Reuters expected that factory orders would rise 0.5% in the month.

As measure for business spending plans, new orders for non-defence capital goods, stripping out those for aircraft, slipped 0.1%.

Orders for transportation equipment rose 1.9% in September, after rising 13.3% reflecting a 118.7% in orders for defence aircraft and components.

Orders for civilian aircraft and components fell 17.5% during the month, while demand for motor vehicle ticked up 0.5%.

Orders for primary metals, machinery, computers and electronic products rose during September, whereas demand for electronic equipment, appliances and components dipped.