Strong demand for machinery and computers

US factory orders rose in September after business investment jumped by its highest amount in six months.

Factory orders increased for a third straight month, rising by 0.3 percent, according to the latest figures.

Demand for core capital goods, seen as a bellwether for business investment spending, jumped 2.5 percent - driven by strong demand for machinery and computers - represented the largest increase since a 5.4 percent rise in March.

The report on factory orders covers durable goods, items expected to last at least three years, and non-durable goods, which includes products such as paper, chemicals and clothing.

Unemployment falls

The US unemployment rate dropped to 9% in October from 9.1% the month before.

The US added 80,000 new jobs in October, the Department of Labor said. The world's largest economy added 158,000 jobs in September, more than the original estimate of 103,000.

Beneath the headlines

If you are superstitious, you might think the month of October is jinxed. The Wall Street crash of 1929, Black Monday in 1987, the meltdown of 2008... all happened in October.

Stock markets around the world experienced headline-grabbing falls on the last day of October 2011, but put that in perspective. Stocks had their best month in almost a decade. The Dow index rose 1,041 points, almost ten percent, in the month, its largest monthly percentage gain in nine years.

Stronger corporate earnings from corporations including Google and McDonald's and positive signs signs that the US economy was not as bad as feared. Retail sales rose 1.1 percent in September, the biggest gain in seven months.

September consumer spending increased

Consumer spending in the US was up in September 2011. According to figures from the Commerce Department, personal spending in the US rose 0.6% to $68.7bn in the month. Consumer spending accounts for 70 percent of US economic activity.

September economic indicators

The Federal Reserve said industrial production grew 0.2% in September 2011, having been unchanged in August. Factory output grew for a third consecutive month, rising 0.4%.

The US Labor Department says US consumer prices rose by 0.3% in September. Stripping out food and petrol costs, so-called core prices increased by just 0.1% - the smallest gain since March.

Separate figures for September showed that construction of new homes in the US hit its fastest pace for 17 months. Statistics from the Commerce Department showed housing starts were running at a seasonally adjusted annual rate of 658,000 units, a 15% rise on August's figure and much higher than analysts' expectations.

On behalf of its UK clients selling in the US, ExportAction is encouraged by theses figures.