© Reuters.
A surge in durable goods orders in September, particularly Boeing (NYSE:) airplanes, exceeded Wall Street Journal economists’ growth projection of 2%, registering a 4.7% increase. This surge was largely driven by a 93% jump in commercial plane orders, primarily due to new contracts secured by Boeing (NYSE:BA).
Despite the significant rise, when the influence of transportation, known for its tendency to exaggerate durable-goods report fluctuations, is discounted, the growth was pegged at a more modest 0.5%, in line with economists’ predictions.
However, car dealers experienced a 1% reduction in new orders. Interestingly, the ongoing United Auto Workers strike did not significantly impact new vehicle demand. Excluding these two major industries, order growth remains robust, suggesting an expanding economy.
Business investment marked a second consecutive month of growth with core orders rising by 0.6%. Despite this positive trend, companies are pulling back on investments due to escalating borrowing costs and economic volatility.
The industrial economy shows signs of recovery but substantial growth isn’t anticipated until inflation is controlled and interest rates drop. The GDP surged by 4.9%, indicating an accelerating U.S. economy.
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This story originally appeared on Investing
