NEW YORK (CNN/Money) - Orders for long-lasting goods rose in September, the government reported Wednesday, coming in lower than estimates.
But, excluding volatile transportation orders, the measure posted a solid gain.
Durable goods orders rose 0.2 percent following a revised decline of 0.6 percent in August, the Commerce Department reported. Wall Street had expected an increase of 0.5 percent, according to Briefing.com.
Non-defense spending on long-lasting goods excluding aircraft, which is seen as an approximation of business spending, climbed 2.6 percent after a 0.3 percent gain in August and a 0.6 percent in July.
Following the report, equity futures inched lower and Treasuries gained, with the 10-year note yielding 3.98 percent.
Demand for aircraft and cars fell in September, with orders for civilian aircraft falling 16.3 percent and motor vehicle orders easing 1.7 percent. Indeed, General Motors and Ford reported weak results from auto operations when they posted third-quarter results in mid-October.
Excluding the volatile transportation readings, durable orders rose 1.7 percent after a 2.8 percent gain the previous month.
Defense spending climbed 26.5 percent, marking the third consecutive month of gains. Excluding defense spending, new orders fell 0.9 percent, according to the Commerce Department.
The durable goods report is one of the last economic reports before next Tuesday's presidential election and precedes Friday's advanced reading on gross domestic product. Analysts expect the third-quarter GDP report to show a gain of 4.3 percent, following a gain of 3.3 percent in the second quarter.