American manufacturer orders increases slightly in September.

A jump in reservations for civilian aeroplanes was somewhat offset by declines elsewhere in September, resulting in a modest increase in new orders for American-made items, signalling that manufacturing momentum has slowed amid fast rising borrowing rates.

 

After increasing by 0.2% in August, the Commerce Department reported on Thursday that manufacturing orders increased by 0.3%. The uptick in September was in line with what economists had predicted. On a yearly basis, orders increased 13.0% in September. As consumers shift their spending back to services, demand for products is also declining.

 

in order to make up for the ‘cumulative tightening of monetary policy’ it has already implemented, the federal reserve signalled future increases in borrowing costs could be made in smaller steps on wednesday. the policy rate was increased by another three-quarters of a percentage point to a range of 3.75% to 4.00%.

 

it was the fourth consecutive rate increase of 75 basis points as the fed works to get inflation back to its 2% target.