US factory orders for September +0.3% vs. +0.2% estimate

Ex transportation 0.6% vs 0.0% last. Durable goods orders -0.3% vs -0.1% in the preliminary report.

The US factory orders for September came in a +0.3% versus 0.2% expected. The prior month was revised to +0.4% from +0.2%.

Taking out transportation, the September orders increased a robust 0.6%. This was on the back of a increase of 0.3% - revised higher from 0.0%.

Part of factory orders is durable goods orders. The preliminary data for durable goods was released a few days ago. The revised data is not so robust.

• Durable goods orders for September final was revised to -0.3% from -0.1%
• Ex transportation final remained unchanged at 0.1% versus 0.1% initially reported
• Capital goods orders nondefense ex-air fell by -1.3% versus -1.2% initially reported
• Capital goods shipments of nondefense ex-air was higher by 0.4% versus +0.3% initially reported

Overall, the data is probably a bit better than expectations. Is it a game changer for the Fed. The Fed - barring a disaster from the election and it's aftermath - will likely tighten in December. However, from that point going forward, the Fed will likely say they see 2-3 tightenings in 2017 which is probably wishful thinking once again.