October core machine orders soared 10.7 percent after increasing 7.5 percent the month before. On the year, core orders were up 14.2 percent after declining 0.5 percent in September. These data, though very volatile, are a popular proxy for capital expenditures. The total value of machinery orders received by 280 manufacturers increased 20.9 percent from the previous month on a seasonally adjusted basis. Private sector core nonmanufacturing orders added 10.7 percent.
The total value of new private-sector purchase orders placed with manufacturers for machines, excluding ships and utilities. It is a leading indicator of production. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
It is a leading indicator of production. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. The importance of machinery orders cannot be overstated given the economy's dependence on exports. The purpose of these data is to get a picture of machinery manufacturers' order books and to collect basic material for analyzing the direction of the economy through an early understanding of trends in capital investment in machinery.
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