Factory orders up 2.3% in August, up from 2.1% expected

New orders for products manufactured in the United States recorded their largest increase in almost a year in August, stimulated by a sharp increase in demand for aircraft, but the signs of weakness in capital equipment equipment suggest that the manufacturing sector could slow down.

Orders for manufactured goods rose 2.3%, the largest increase since September 2017, the Commerce Department announced Thursday. July data were revised upward to indicate that factory orders fell 0.5% instead of the previously announced 0.8% decline.

Economists polled by Reuters forecast a rebound of 2.1% of factory orders in August. Orders rose 8.6% year over year in August.

The manufacturing sector, which accounts for about 12% of the US economy, is buoyed by robust domestic demand, but the momentum is expected to gradually slow in the face of a labor shortage, to one more trade war. in addition, between the United States and China, a strong dollar and a moderate global climate. growth.

A survey released Tuesday by the Institute of Suppliers for Supply Management showed that plant activity had declined from the peak reached in 14 years in September.

In August, orders for transportation equipment climbed 13.1%, the largest increase since June 2017. This increase reflects a strong 69.1% increase in volatile orders for civil aircraft and parts. . Orders for aircraft and defense pieces soared 17.0% in August. Transportation orders fell 3.6% in July.

Motor vehicle orders rose 1.0% in August after a 1.6% gain in July. Orders for primary metals, metal products and electronic equipment, appliances and electronic components have increased. But orders for machinery, computers and electronics dropped.

The Commerce Department also said that non-defense capital goods orders for the month of August excluding aircraft, as a measure of corporate spending plans, fell by 0.9% instead of 'a drop of 0.5% as indicated last month. Orders for these basic capital goods increased 1.5% in July.

Shipments of basic equipment goods, used to calculate office equipment expenses in the Gross Domestic Product report, fell 0.2% in August instead of a 0 increase, 1% as indicated last month.

Shipments of basic equipment increased 1.2% in July. Business equipment spending slowed in the second quarter, following a sharp increase since the first quarter of 2017.