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WASHINGTON (AP) —
Factory orders are expected to show a gain in September in a further
sign of a revival in manufacturing that should help support the overall
economy. Economists surveyed by Thomson Reuters expect orders to
U.S. factories grew 0.8 percent in September, reversing a decline of
that amount in August. The Commerce Department is scheduled to release
the report at 10 a.m. EST Tuesday. The report will cover orders
for durable goods, big-ticket items expected to last at least three
years, and nondurable products such as chemicals, paper and energy
products. The government last week issued an advance look at durable
goods orders which showed they increased 1 percent in September, the
second advance in three months.
The Institute for Supply
Management on Monday said its gauge of manufacturing activity grew in
October at the fastest pace in more than three years. It was driven by
businesses' replenishing of stockpiles, higher demand for American
exports and support from the government's $787 billion stimulus program. The
ISM index rose to 55.7 in October, the third straight reading above 50,
which signals growth in the sector. But with jobs scarce, lending tight
and consumers wary of spending, it's unclear whether the gains can be
sustained as government stimulus programs wind down. The ISM, a
trade group of purchasing executives, also said its index showed
manufacturing employment grew for the first time in 15 months, rising
to 53.1 last month from 46.2. But the measure tracking new orders, a
signal of future production, slipped in September.
Farm and
construction equipment makers Deere & Co. and Caterpillar Inc. said
last week they each were adding back a few hundred jobs, and Kemet
Corp., which makes parts for electric drive vehicles and alternative
energy markets, is adding 113 jobs in South Carolina because of a $15.1
million grant from the Department of Energy that is enabling it to
transfer some manufacturing from Europe to the U.S. But layoffs
continue. Sun Microsystems Inc. said in October it plans to eliminate
up to 3,000 jobs before it's acquired by Oracle Corp. In October,
the ISM said 13 of the 18 manufacturing industries surveyed expanded,
led by petroleum and coal production, apparel and furniture. Three
industries shrank.
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