Investors got more evidence today that the manufacturing sector expansion continued into late summer/early fall. The key ex-transportation component also came in higher, at 0.4%. And the ex-defense number rose 1.9%. A solid month overall.
While overall factory orders fell 0.5% in August, if we factor out the volatile transportation component, orders actually rose 0.9% in August -- a statistic that confirms that the expansion in the nation%u2019s manufacturing sector continued this summer, but at a slower pace.
August's 1.3% drop in durable goods orders looks bad. But the real story is that the more-telling component that excludes volatile transportation orders rose 2%, doubling a Bloomberg survey's consensus estimate. So far, Wall Street is reacting ecstatically.
Factory orders rose just 0.1% in July, the U.S. Commerce Department announced Thursday in a report that further clarified that the manufacturing sector's expansion slowed down this summer. While the statistic did indicate tepid growth, it was less than the 0.3% gain economists had predicted.
Investors nervous about a stalled economic recovery -- or possibly the second dip of a double-dip recession -- will watch for this week's economic data, including construction and consumer spending, factory orders and August jobless figures.
The less-than-expected durable good orders gain in July is more evidence that economic growth slowed in summer. This will likely increase pressure on the Fed for action to jump-start a U.S. economy that's operating well below potential.
Orders fell 1.2% in June, well below a survey estimate of a 0.5% drop, marking two down months in a row. Even excluding the often-volatile transportation component (airplanes and cars), orders fell 1.1% in June.
An unexpectedly high 1.4% decline in May factory orders capped a difficult week for the U.S. economy. Many analysts are worried that recent data for job creation, jobless claims and home sales all indicate that domestic growth is slowing.
According to the Institute for Supply Management, service sector businesses grew for the fifth straight month in May, and added more jobs than they shed for the first time since early 2008. Meanwhile, manufacturing's upswing continues.
More evidence that the U.S. manufacturing sector continues to mend, as factory orders unexpectedly rose 1.3% in March, the U.S. Commerce Department said. Equally significant, the nontransportation component surged 3.1%, which suggests the nation%u2019s core industrial segment continues to strengthen.
Factory orders in February continued their upward trend, in part driven by shipments of chemical products, according to the U.S. Commerce Department survey released Wednesday. New orders rose 0.6% to $383.5 billion, marking that statistic's eleventh consecutive month of gains.
More evidence that the U.S. manufacturing sector continues to heal, as factory orders rose a better-than-expected 1.0% in December.
The Commerce Department's November report shows that the U.S. manufacturing sector continues to mend. Equally encouraging: Inventories rose for the second straight month, as suppliers became more confident about holding goods.
