U.S. durable goods orders rose 0.2% in September, as strong spending on capital goods offset weakness in orders for metals and aircraft.

The Commerce Department said that orders for durable goods increased 0.2% to US$195.7 billion in September after a revised 0.6% decline in August. Economists were expecting a 0.6% increase in new orders.

Orders for non-defense capital goods excluding aircraft, a measurement of business spending, rose 2.6% after a 0.3% increase in August.

Durable-goods inventories went up just 0.3% in September and shipments eased 1.2%. Unfilled orders rose 0.7%

Meanwhile, U.S. new home sales were higher than expected in September, as low mortgage rates continued to fuel the housing industry throughout most of the country..

New-home sales rose 3.5% to a 1.206 million annual rate during September–the third-highest pace on record, the Commerce Department reported. August sales were revised downward to a rate of 1.165 million, a 5.8% gain from July. Previously, August new home sales were reported at a 1.184 million pace.

Economists had expected a modest decline in September new home sales to an annual rate of 1.150 million.