US durable goods orders jump 1.8% in September, beating forecasts
New orders for US-manufactured durable goods rose 1.8% in September, far above the 0.6% increase expected, the US Census Bureau reported.
The figure marked a sharp rebound from August’s 0.1% decline. In dollar terms, orders climbed $6.3 billion to reach $345.4 billion for the month.
Transportation equipment was the main driver of the gain, up $5.2 billion, or 4.6%, to $119.8 billion, after increasing in two of the previous three months. Stripping out transportation, new orders still advanced 0.5%. Excluding defense-related items, orders were up 2.2%, the Census Bureau said.
The release had little immediate impact on currency markets. The US Dollar Index was trading around 102.18, up 0.15% on the day, with the greenback posting its biggest gain against the euro among major peers.
Durable goods orders measure demand for long-lasting manufactured products such as aircraft, vehicles and machinery, and are closely watched as a gauge of business investment and industrial momentum.
Why it matters for markets: Stronger-than-expected durable goods orders point to resilient business investment, which can support expectations for US economic growth. This matters for the US Dollar Index and USD pairs such as EUR/USD, as firmer growth data can influence interest-rate expectations and demand for the dollar.
Source: FXStreet