U.S. Factory Orders Fell Slightly in August

By Matt Grossman

Orders at U.S. factories edged barely lower in August, according to data from the Department of Commerce, close to what economists had forecast.

August orders for new manufactured goods fell 0.2% to $590.4 billion, from a revised $591.6 billion in July. Economists polled by The Wall Street Journal had expected orders to stay flat in August, after July brought the largest one-month increase on a percentage basis since the summer of 2020.

Factory orders for durable goods, products meant to last at least three years, were virtually flat at $289.6 billion. Orders for nondurable goods from factories slipped by 0.5% to $300.8 billion.

The data update investors' understanding of how the manufacturing industry has reacted to the Federal Reserve's effort to tame inflation, as the central bank now turns to cutting interest rates. Despite tighter monetary policy over the past two years, the Atlanta Fed's tracker is estimating that the economy grew at a 2.5% annualized rate in the third quarter. But some analysts worry that a rising unemployment rate signals growth is slowing.

Durable-goods shipments decreased 0.6% to $289.3 billion in August. Nondurable goods shipments were down 0.5% to $300.8 billion.

Unfilled orders for durable goods grew 0.4% to $1.39 trillion.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

October 03, 2024 10:30 ET (14:30 GMT)

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