WASHINGTON (AP) — Businesses spent less last month onmachinery, computers and most other
items, lowering orders for U.S.long-lasting factory goods. The decline suggests companies may have
beenreluctant to invest during the 16-day partial government shutdownTheCommerce Department said
Wednesday that orders for durable goodsdropped 2 percent in October from September. That follows a 4.1
percentincrease in September from August.Durable goods are meant to last at least three years.Demandfor
commercial aircraft plunged nearly 16 percent last month,accounting for much of the decline. But orders
also fell 1.2 percent in aclosely watched category, known as core capital goods, which excludesvolatile
transportation and defense orders. That was the second straightdrop.Economists pay closer attention to
core capital goods because those orders can reflect businesses’ confidence in the economy.Manycompanies
may have held off placing orders in October, awaiting theoutcome of a budget impasse that shut down
parts of the federalgovernment.However, the report conflicts with a private sectorsurvey released
earlier this month that showed companies shrugged offthe shutdown and boosted orders.The Institute for
SupplyManagement, a trade group, said factory activity accelerated for thefifth straight month in
October to the fastest pace in 2 ½ years. Thesurvey’s measure of new orders ticked up and production
remained strong,though it slowed from the previous month.Other reports havesuggested that manufacturing
has picked up since the spring. Strong autosales and a healthier housing market have pushed up demand
for steeland other metals, auto parts, furniture and appliances.Andfactory output rose for the third
straight month in October, accordingto the Federal Reserve, driven higher by greater production of
primarymetals and furniture.Overseas demand for many goods has alsorisen as Europe has climbed out of
recession, Japan is growing fasterand China’s economy has slowed but is still growing at a healthy
pace.Changesin aircraft demand can frequently push the overall figure up or down.Aircraft orders soared
59 percent in September, accounting for most ofthe total increase in orders that month.Boeing says it
received orders for 79 planes last month, down from 127 in September.Copyright 2013 The Associated
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