Orders Drop Shows U.S. Business Confidence Wanes: Economy

Orders to manufacturers unexpectedly dropped in September and households were more glum in October for a third consecutive month, showing the U.S. economy was taking a step back heading into the fiscal gridlock that partially shut down the federal government.

Bookings for non-military capital goods excluding aircraft, which reflect demand for productivity-enhancing equipment like machinery and electrical gear, decreased 1.1 percent last month, the second drop in three months, the Commerce Department reported today in Washington. Other data showed consumer sentiment sank to a 10-month low.