US factory orders rise to 10-month high in Jan

According to data released by the US Commerce Department, US factory orders posted the largest increase in January seen since March 2015 owing to higher demand. Durable goods orders surged 4.9% on the month in January, exceeding economists’ expectations, which called for a 2.5% rise after orders posted a revised 4.6% decrease in December. The increase was attributed to higher civilian aircraft orders, which jumped 54.2% in January.

The data revealed that orders for motor vehicles and parts increased 3% in January while orders for non-defense capital goods excluding aircraft rose 3.9% following an upwardly revised decline of 3.7% in December.

Meanwhile, shipments of core capital goods fell 0.4% in January while inventories of factory goods dropped 0.1% after rising for the first time in five months in December.