US October factory orders leave Q4 GDP tracking at 2.1%

In October, US total factory orders climbed to 1.5 mom, close to the expectations of 1.4% gain by market consensus. Durable goods October orders were revised one tick down, to 2.9 mom, reflecting the effects of large gain in non-defense aircraft orders.

Non-durable goods orders were steady for the month, core capital goods were 1.3% mom while shipments now indicate a modestly large drop monthly as there was an upward revision in September data.

"We continue to expect equipment investment growth to moderate in Q4 following the 9.5% annualized gain reported for Q4. The upward revision to our Q4 inventory expectation boosted our GDP tracking estimate one-tenth, to 2.1%", says Barclays in a research note.