Factory orders surged 2.8 percent in September well above Econoday's consensus and near Econoday's top estimate. September's split between the report's two main components shows a 1.0 percent rise for nondurable goods -- the new data in today's report and where details are yet to be published -- and a 4.6 percent revised rise for durable orders versus 4.7 percent for last week's advance reading.

Commercial aircraft (nondefense aircraft and parts) jumped 92.5 percent to lead September's gains. Monthly swings for aircraft have been common in a rising trend but it's machinery, up 0.7 percent, that underpins the fundamental strength of September's data. Joining machinery is a 0.8 percent gain for fabrications and 1.0 percent gains for both computers & electronics as well as for electrical equipment. These gains echo the rise in machinery and are inputs into the core capital-goods group where orders rose 0.5 percent following August's 0.9 percent jump (note September is revised 1 tenth lower from the advance report).

Unfilled orders, lifted here too by commercial aircraft, are another key positive, rising 1.4 percent to extend a run of gains that will support factory payrolls and also future shipments. Shipments in September rose 0.4 percent while inventories rose 0.2 percent.

These results belie broad weakness among most business surveys (including deepening contraction for the ISM manufacturing index) and point to building momentum for the factory sector going into the final quarter.

Factory orders are expected to rise 1.6 percent in September versus August's 1.2 percent that reflected a 2.1 percent jump for nondurable goods. Durable goods orders for September, which have already been released and are one of two major components of this report, jumped 4.7 percent on the month.

Factory orders represent the dollar level of new orders for both durable and nondurable goods. This report gives more complete information than the advance durable goods report which is released one or two weeks earlier in the month.

Investors want to keep their fingers on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more moderate growth which is less likely to cause inflationary pressures. By tracking economic data like factory orders, investors will know what the economic backdrop is for these markets and their portfolios. The orders data show how busy factories will be in coming months as manufacturers work to fill those orders. This report provides insight to the demand for not only hard goods such as refrigerators and cars, but nondurables such as cigarettes and apparel. In addition to new orders, analysts monitor unfilled orders, an indicator of the backlog in production. Shipments reveal current sales. Inventories give a handle on the strength of current and future production. All in all, this report tells investors what to expect from the manufacturing sector, a major component of the economy and therefore a major influence on their investments.