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

The U.S. Commerce Department reported on Friday that the value of new factory orders rose 0.7 percent m-o-m in August, following a revised 6.5 percent m-o-m climb in July (originally a 6.4 percent m-o-m surge). That marked the fourth consecutive month of gains in factory orders.

Economists had forecast a 1.0 percent m-o-m increase.

According to the report, orders for transportation equipment increased 0.4 percent m-o-m in August, slowing from +35.3 percent m-o-m in July. Gains also occurred in orders for machinery (+1.5 percent m-o-m), primary metals (+1.6 percent m-o-m) and computers and electronic products (+1.2 percent m-o-m). These increases, however, were partially offset by declines in new orders for electrical equipment, appliances, and components (-0.8 percent m-o-m) and fabricated metal products (-1.2 percent m-o-m).

Meanwhile, total factory orders excluding transportation, a volatile part of the overall reading, also rose 0.7 percent m-o-m in August (compared to an upwardly revised 2.4 percent m-o-m advance in July), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, increased 0.9 percent m-o-m instead of advancing 1.8 percent m-o-m as reported last month. The report also showed that shipments of core capital goods jumped 1.5 percent m-o-m in August, as previously reported.