US Factory Orders Rose 0.1% in August, Second Monthly Gain
New orders for manufactured goods edged up $0.7 billion in August, marking a second straight monthly increase.
New orders for manufactured goods climbed modestly in August, rising $0.7 billion to a total of $663.5 billion, the U.S. Census Bureau reported. The 0.1 percent gain extended a two-month streak of improvement following a revised 0.8 percent advance in July.
The back-to-back increases suggest a degree of stabilization in domestic manufacturing demand after a period of uneven activity. While the August uptick was marginal, consecutive monthly gains can signal a firming trend in industrial output and business investment intentions.
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Factory orders are a closely watched leading indicator of manufacturing health, reflecting forward-looking purchasing decisions by businesses across durable and nondurable goods sectors. Sustained growth in this measure is often associated with broader economic expansion, while stagnation or contraction can foreshadow weakness in industrial production.
The July figure was revised upward to a 0.8 percent increase, a revision that adds weight to the emerging two-month pattern. Analysts will watch subsequent reports to determine whether the modest momentum carries into the final months of the year.
Continue reading at U.S. Census Bureau Economic Briefing Room.
