Orders to U.S. factories for big-ticket durable goods shot up 4.6 percent in September, the steepest jump in nearly four years, raising new questions about the extent to which the economy is slowing.
U.S. bonds fell early Friday following the release of the report.The Commerce Department said Friday that much of the advance was due to a rebound in volatile aircraft orders. But excluding the transportation component, orders were up 0.9 percent, the fifth increase in the past six months.
Orders totaled a seasonally adjusted $174.1 billion, a record, compared with $166.4 billion in August. It was the largest increase since a 7.8 percent jump in December 1992.
Durable goods include items such as aircraft and appliances expected to last more than three years.
Many analysts had expected only a 1.7 percent increase in orders, a key gauge of the nation's manufacturing sector. Gains could mean increased production and more jobs.
Federal Reserve officials have warned they may have to raise interest rates if the economy does not slow from its robust pace during the April-June quarter. They fear a strong economy could ignite a new round of inflation.
The increase was just the fourth this year. The reports are volatile and have bounced back and forth each month since March. Still, orders for the year were 5.9 percent above those of the same period in 1995.