US factory orders rebound as expected in August

WASHINGTON (Reuters) -New orders for U.S.-manufactured goods rebounded ​in August, though business spending on equipment ‌was not as strong as initially thought.

Factory orders increased 1.4%‌ after an unrevised 1.3% decline in July, the Commerce Department's Census Bureau said on Tuesday. The increase was in line ⁠with economists' expectations.‌ Orders rose 3.3% on a year-on-year basis in August.

The ‍report, initially due on October 2, was delayed by a recently ended record 43-day shutdown of ​the federal government.

Manufacturing, which accounts for about ‌10.2% of the economy, is struggling with the fallout from tariffs on imports. The Institute for Supply Management's manufacturing PMI has contracted for eight straight months.

The government also reported ⁠that orders for non-defense ​capital goods excluding aircraft, ​which are seen as a measure of business spending plans on equipment, increased 0.‍4% instead ⁠of 0.6% as estimated in September.

Shipments of these so-called core capital goods dropped ⁠0.4% rather than 0.3% as reported ‌in September.

(Reporting by Lucia Mutikani;‌ Editing by Andrea Ricci)

Scroll to Top