U.S. factory orders decrease less than forecast in August

The U.S. Commerce Department reported on Thursday that the value of new factory orders edged down 0.1 percent m-o-m in August, following an unrevised 1.4 percent m-o-m gain in July. 

Economists had forecast a 0.2 percent m-o-m drop.

According to the report, orders for transportation equipment declined 0.4 percent m-o-m in August after surging 7.3 percent m-o-m in July. There were also drops in orders for computers and electronic products and electrical equipment, appliances and components. Meanwhile, machinery orders grew 0.4 percent m-o-m in August after falling 1.0 percent m-o-m in July.

Total factory orders excluding transportation, a volatile part of the overall reading, were unchanged m-o-m in August (compared to a downwardly revised 0.2 percent m-o-m advance in July), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, decreased 0.4 percent m-o-m (compared to a 0.2 percent m-o-m decline in July). The report also showed that shipments of core capital goods increased 0.3 percent m-o-m in August, following a 0.4 percent m-o-m climb in July.

In y-o-y terms, factory orders decreased 0.1 percent in August.