The Commerce Department announced that September’s new orders for manufactured goods rose 1.1% to $475 billion after rising 0.6% in August. Demand for transportation equipment led the way, while orders for machinery, furniture and electrical equipment fell. Unfilled orders at factories fell 0.2%, factory inventories were unchanged for the second consecutive month, while shipments of manufactured goods rose 0.3%. Orders for non-defense capital goods, excluding aircraft, which are considered a measure of companies' spending plans on equipment, rose 1.0%. Basic capital goods shipments, which are used to calculate business capital expenditure in the GDP report, increased 0.5%. In assessing the overall recovery post lockdown, the total orders were still 4.3% lower than in February.
The U.S. Census Bureau reported that the U.S. trade deficit narrowed in September after hitting a 14-year high in August. The gap narrowed to $63.9 billion in September, down 4.7% from a deficit of $67 billion in August. Exports in September rose 2.6% to $176.4 billion, led by the food and beverage category, where shipments of $12.9 billion were the highest since July 2012. Soybean shipments to China accounted for a large part of the increase. Imports rose 0.5% to $ 240.2 billion.
The Labor Department reported nonfarm productivity increased 4.9% in the third quarter, following an even larger increase of 10.6% in the second quarter. Labor costs fell 8.9% after increasing 8.5% in the second quarter. Production increased by 43.5% in the third quarter compared to a contraction of 36.8% in the second quarter, while hours worked increased by 36.8% compared to a contraction of 42.9% in the previous quarter. The figures show companies are employing fewer people to do more work.
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