New orders for U.S.-made goods unexpectedly rose in September, though manufacturing remains constrained by input shortages, Reuters reported. The Commerce Department said on Wednesday that factory orders increased 0.2% in September. Data for August was revised down to show orders rising 1.0% instead of 1.2% as previously reported. Economists polled by Reuters had forecast factory orders unchanged. Orders gained 17.6% on a year-on-year basis. Manufacturing, which accounts for 12% of the economy, is being driven by still-strong demand for goods despite spending shifting back to services. Businesses are rebuilding depleted inventories, but shortages of labor and raw materials stemming from the COVID-19 pandemic remain challenges. The widespread shortages restrained economic growth to its slowest pace in more than a year in the third quarter. An Institute for Supply Management survey on Monday showed that manufacturing activity slowed in October, with all industries reporting record-long lead times for raw materials.
