New orders for US durable goods increased during October despite inflation
Consumer spending has been resilient in the US amid a higher cost of living
Brotherhood of Locomotive Engineers and Trainmen National President Dennis Pierce discusses the imminent rail strike amid a large rail union’s decision to reject Biden’s labor deal.
The United States Census Bureau announced on Wednesday that new orders for manufactured durable goods increased in October, despite persistent inflation and global economic instability.
Non-military new orders for capital goods increased by $1.7 billion, or 1.9%, totaling $91 billion, whereas ships rose by $1.1 billion to $83.9 billion in October. Moreover, inventories rose by 0.7% to 2$22.6 billion.
Orders for overall durable goods also went up by 1%, or $2.8 billion, totaling $227.4 billion. Previously, orders increased by 0.3% in September, a noticeable change between the two correlating months.
The survey indicates that companies, despite growing manufacturing costs, are looking to improve productivity through greater investments amid the uncertainty of a Federal Reserve interest rate hike.
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Despite high manufacturing costs, new orders for manufactured durable goods increased during the month of October. (RENDAN SMIALOWSKI/AFP via Getty Images / Getty Images)
Also, shipments of manufactured durable goods have steadily increased in 17 of the last 18 months, according to the Census Bureau.
Domestically, United States consumers have been resilient in the face of inflation, spending more on products boosting manufacturers' bottom line; however, a global economic slowdown still looms.
One of the ways economists measure a country's GDP via government equipment investment is through core capital goods shipments, which have risen by 1.3% since January.
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The exact estimates for U.S. fourth-quarter GDP will be released at the beginning of the new year. The data provided by the census bureau indicates it the U.S. will likely have a strong GDP at the start of 2023.