Official figures show that new orders for long-lasting US manufactured goods rose 1% in September, suggesting that the country's recovery from recession may be steadying.
The increase met economists' expectations and was the second in the last three months. It followed a 2.6% decline in August. Compared with a year ago, however, orders were down 24.1%, the Commerce Department figures showed.
Durable goods orders are a leading indicator of manufacturing, which in turn provides a good measure of overall business health.
Non-defence capital goods excluding aircraft, a closely watched indicator of business spending, beat expectations and rose 2% in September after falling 0.8% the month before.
Inventories fell for the ninth month in a row, by 1%. There are concerns that the continued drop in inventories will be a drag on economic growth.
The Commerce Department will report third-quarter gross domestic product figures tomorrow. Analysts are expecting a 3.3% rise, based on rebounds in consumer spending and the housing market.
New US home sales in surprise drop
Meanwhile, US new home sales fell unexpectedly in September after five consecutive monthly increases, government data showed today.
The Commerce Department said sales of new single-family homes dropped at a seasonally adjusted annual rate of 402,000 or by 3.6% last month from a revised 417,000 in August.
That was far below market forecasts of a level of 440,000 in September as analysts had expected sales to post their sixth consecutive monthly gain with builders cashing in on a federal tax credit for first-time homebuyers that expires at the end of next month.
The fresh data reflected the sluggish recovery of the housing sector, at the epicentre of the global financial crisis that slammed the brakes on US growth following a mortgage meltdown.
