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New orders for U.S. manufactured goods increased by more than expected in the month of September, according to a report released by the Commerce Department on Friday.

The Commerce Department said factory orders climbed by 0.7 percent in September after spiking by an upwardly revised 2.6 percent in August.

Economists had expected factory orders to rise by 0.5 percent compared to the 2.3 percent jump originally reported for the previous month.

Durable goods orders increased by a downwardly revised 0.7 percent in September after soaring by 4.7 percent in August. Orders for transportation equipment led the way higher once again, surging up by 1.9 percent.

The report said orders for non-durable goods also rose by 0.6 percent in September, matching the increase seen in the previous month.

The Commerce Department also said shipments of manufactured goods increased by 0.9 percent in September after climbing by 0.7 percent in August.

Inventories of manufactured goods also rose by 0.5 percent in September following a revised 0.1 percent uptick in the previous month.

With shipments rising more than inventories, the inventories-to-shipments ratio dipped to 1.33 in September from 1.34 in August.