Factory orders fell back in August but were skewed by a month-to-month dip for aircraft which, based on a run of order announcements from Boeing, looks to swing higher in September. Factory orders fell 0.5 percent in August yet were up 0.9 percent excluding transportation, which is the category that includes aircraft. Details show a 1.5 percent decline in durable goods (revised from minus 1.3 percent) with the first reading on non-durables up 0.3 percent on strength in chemicals.
From the WSJ:
U.S. manufactured goods orders decreased by 0.5% to $408.94 billion, the Commerce Department said Monday.The big problem with this report is Boeing, which can really play with the numbers.
Commercial airplanes drove the decline; excluding transportation, all other factory orders rose.
The report had positive data. A barometer of business capital spending increased; non-defense capital goods orders excluding airplanes rose by 5.1%.
Let's look at some of the subparts:
Excluding transportation, we're seen the following numbers for new orders for the last three months: -.6%, -.9% and up .9%. That is two monthly declines, although this months number was strongly higher.
Excluding defense, we've seen the following numbers for new orders for the last three months: -.5%, .5%, -.5%.
For machinery, we've seen the following numbers for new orders for the last three months: 4.1%, -9.8%, 5.2%. These only account for 6.57% of all orders, but are an indicator for future business investment.
New orders for computers and electronic components. have printed the following for the last three months: -.9%, -.3% 3.7%. These only account for 6.94% of new orders.
Overall, this number points to a slowing in the manufacturing sector, but hardly a collapse.
Here's a link to the Census report.