Mubasher: Demand on US-manufactured products posted the largest fall in more than a year during October, while weakening business expenditure on equipment suggested a slowdown in manufacturing activity.
New orders for factory goods fell 2.1% in October, on easing demand for a range of goods, transportation equipment, compared with a downwardly revised 0.2% gain in September, the US Census Bureau said on Thursday.
This marked the largest drop in orders since July 2017, while it came slightly above forecasts of 2%, according to analysts surveyed by Thomson Reuters.
Orders for transportation equipment dropped 12% in October, the steepest drop since October 2017, reflecting a 59.3% slump in orders for defence aircraft and components.
Orders for civilian aircraft and components slid 22.2% during the month, while demand for motor vehicles ticked down 0.1%.
As measure for business spending plans on equipment, new orders for non-defence capital goods, stripping out those for aircraft, remained stable.
However, shipments of core capital goods, a measure for business equipment spending in the gross domestic product (GDP) report, rose 0.3% in October.
Orders for primary metals and machinery fell in October, whereas those for computers and electronic products, electronic equipment, appliances and components rose.