Today’s release of September new orders data from the Commerce Department showed an overall 0.9% pick-up in new orders, slightly beating analyst expectations of 0.8%. Ex-transportation, growth was still 0.8%, so can’t blame Cash for Clunkers for the strength. Inventories also nicely came down for the 13th consecutive month.
It’s worth noting that new orders growth for Machinery was a strong 7.9% (far right column, below, which shows September vs. August growth), driven by a massive 47.4% jump in orders for construction machinery. Yes, the data is seasonally adjusted, and there appears to have been a large jump even on the non-adjusted numbers. Thus while data can be volatile, one wonders what exactly caused the massive jump here.
The full release is provided below.