US factory orders rise 1.8% in September for 3rd consecutive monthly gain

New orders for US-manufactured goods rose 1.8% in September to $677.2 billion, marking their third consecutive monthly increase, the US Census Bureau said Tuesday.

The increase exceeded market expectations of a 1.2% gain.

Factory orders climbed $12.2 billion from August, according to the bureau.

The bureau also revised August's increase upward to 0.3% from the previously reported 0.1%.

Orders for transportation equipment rose $5.3 billion, or 4.6%, to $119.9 billion, accounting for nearly half of the overall increase.

Excluding transportation equipment, factory orders increased 1.3%.

Orders for durable goods, including aircraft, vehicles and machinery, climbed 1.9% to $345.7 billion, slightly above the initial estimate of a 1.8% gain.

Orders for nondurable goods rose 1.8% to $331.6 billion, according to the data.

Business investment indicator rises

Orders for nondefense capital goods excluding aircraft, a closely watched indicator of business investment plans, increased 0.6% in September.

Shipments in the same category climbed 1.2%, according to the Census Bureau.

Overall factory shipments rose 1.3% to $668.5 billion after edging up 0.1% in August.

Unfilled orders increased 0.9% to $1.62 trillion, while inventories grew 0.4% to $976 billion, marking their 12th consecutive monthly increase.