New orders for U.S. manufactured durable goods unexpectedly increased in the month of September, according to a report released by the Commerce Department on Thursday.
The report said durable goods orders climbed by 0.8 percent in September after surging up by 4.6 percent in August. Economists had expected orders to drop by 0.9 percent.
The unexpected increase in durable goods orders was largely due to a jump in orders for transportation equipment, which shot up by 1.9 percent in September after spiking by 13.2 percent in August.
Orders for defense aircraft and parts soared by 119.1 percent during the month, more than offsetting a 17.5 percent pullback in orders for non-defense aircraft and parts.
Excluding orders for transportation equipment, durable goods orders inched up by just 0.1 percent in September after rising by 0.3 percent in August. Economists had expected a 0.3 percent increase.
A notable increase in orders for machinery was offset by decreases in orders for fabricated metal products and electrical equipment, appliances and components.
The report also said orders for non-defense capital goods excluding aircraft, a key indicator of business spending, edged down by 0.1 percent in September after dipping by 0.2 percent in August.
"Admittedly, the data still suggest that business equipment investment growth rebounded in the third quarter, to between 6% and 7% annualized," Andrew Hunter, U.S. Economist at Capital Economics.
He added, "But the more recent slowdown in monthly orders suggests that strength won't be sustained in the fourth quarter, particularly with the capex intentions surveys appearing to have peaked."
The Commerce Department also said shipments of durable goods jumped by 1.3 percent in September after climbing by 0.9 percent in August.
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