Machine Tool Orders Decline 20% in October

Orders for U.S. machine tools fell 20% in October after dropping 3% in September, the industry’s trade association said on Sunday.

The National Machine Tool Builders’ Assn. said $264 million in machine tool orders were placed in October, down from $328 million in September and off slightly from $267 million in October, 1987.

Orders in the first 10 months of the year, however, were up 72% from the year-ago period to nearly $3 billion, the association said.

Machine tool orders are an indication of capital investment by manufacturers of durable goods, which are items that last at least three years such as refrigerators and cars. Machine tool orders are often volatile from month to month.

Orders for U.S. machine tools placed by foreign customers so far this year are up 87% from the year-ago period to $413 million. Economists credit much of this surge to the decline in the dollar’s value. This makes U.S. products less expensive than their overseas competition.