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U.S. durable goods unexpectedly drop in September, missing expectations

Published 10/27/2016, 08:32 AM
Updated 10/27/2016, 08:32 AM
© Reuters.  U.S. durable goods orders slip in September, core orders rise 0.2%

Investing.com - U.S. orders for long lasting manufactured goods unexpectedly fell in September, though the core number matched forecasts with a slight advance, according to official data released on Thursday.

Total durable goods orders, which include transportation items, dropped 0.1% last month, the Commerce Department said, compared to economists' expectations for a gain of 0.1%.

August’s orders were revised up to show an increase of 0.3% from a previously reported 0.1% gain.

Durable goods are typically bulky or heavy manufactured products designed to last at least three years.

Core durable goods orders, which exclude volatile transportation items, rose 0.2% last month, in line with forecasts.

August's core durable goods orders showed a 0.1% advance, revised up from the initial 0.2% drop.

Durable goods excluding defense and aircrafts slumped 1.2% in September, compared to expectations for a 0.3% gain.

The previous month was revised up to a 1.2% rise from the prior 0.9% gain.

Durable orders excluding defense advanced 0.7% in September, compared to 0.7% decline (revised from a 0.8% decrease) a month earlier.

Immediately after the report, which was released simultaneously with weekly jobless claims, EUR/USD was trading at 1.0924 from around 1.0921 ahead of the publication; GBP/USD exchanged hands at 1.2233 compared to 1.2249 previously; while USD/JPY was at 104.70 from 104.70 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.58 compared to 98.56 ahead of the report.

Meanwhile, U.S. stock futures pointed to a slightly higher open. The Dow futures gained 33 points, or 0.18%, the S&P 500 futures rose 7 points, or 0.33%, while the Nasdaq 100 futures advanced 20 points, or 0.42%.

Elsewhere, in the commodities market, gold futures traded at $1,273.35 a troy ounce, compared to $1,269.95 ahead of the data, while crude oil traded at $49.27 a barrel from $49.33 earlier.

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