Manufacturing Orders Rise For Fifth Month In Six

November 3, 2009 12:15 p.m. EST

Washington, D.C. (AHN) - Orders for manufactured goods in the U.S. increased for the fifth time in six months, the Commerce Department reported Tuesday.

Orders rose to a seasonally adjusted 0.9 percent in September after a drop of 0.8 percent in August. The increases were in machinery, autos, defense goods, and chemicals.

Economists had estimated a gain of 0.6 percent. Still, orders are down 13.9 percent so far this year compared to the first nine months of 2008.

Orders for durable goods rose 1.4 percent after declining 2.7 percent in August. Durable goods constitute slightly more than half of factory demand.

Bookings for machinery jumped 7.9 percent, the biggest gain since March 2008. Orders for vehicles and parts rose 0.6 percent.

On Monday, the Institute for Supply Management reported that manufacturing firms expanded at the highest rate since April 2006.

Inventories dropped 1 percent, a reason for the increase in factory orders.