Stripping out transportation orders which were depressed by a plunge in the volatile aircraft component, new orders were down a more modest 0.1 percent.

Economists polled by Reuters had forecast total new orders received by factories would decline 9.3 percent.

The U.S. manufacturing sector continues to expand, although growth may be moderating. The Institute for Supply Management said on Wednesday that its gauge of factory activity showed slower growth in September.

Read more