The dollar value of new orders for all factory goods decreased 1.3 percent in October after rising 0.2 percent in September and 1.3 percent in August. Excluding transportation, factory orders were down 0.2 percent on the month after edging up 0.1 percent in September.

Durable goods orders declined 2.2 percent on the month after advancing 0.6 percent in September, led by a 6.4 percent retreat in transportation equipment. Nondefense aircraft and parts fell another 20.0 percent after decreasing 6.8 percent in September. Defense aircraft and parts plunged 32.4 percent after surging 34.2 percent in September and 48.3 percent in August. Orders excluding defense still contracted 1.0 percent on the month, with electrical equipment, appliances, and components down 1.6 percent and primary metals down 0.9 percent. By contrast, new orders increased 0.6 percent for both fabricated metal products and computers and electronic products. Machinery was up 0.7 percent.

New orders for nondurable manufactured goods continued on a downward trend with a decline of 0.4 percent in October, after contracting 0.2 percent in September and 0.4 percent in August.

Unfilled orders rose 0.2 percent in October and shipments edged up 0.1 percent.

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.