Factory orders unexpectedly fell in August, stoking concerns about the deepening downturn in the U.S. manufacturing sector.
The U.S. Census Bureau reported on Oct. 3 that factory orders fell by 0.2 percent in August, following a 4.9 percent increase in July. The decline marked a steeper drop than generally anticipated, with economists polled by Reuters expecting orders to remain flat.
Orders for consumer goods, often a bellwether for household spending, fell by 0.5 percent in August, led by a 0.8 percent decline in nondurable goods such as food products and petroleum. This reflects weaker demand for essential goods, suggesting pressure on consumer budgets.
Non-defense capital goods excluding aircraft—commonly referred to as core capital goods—posted a modest 0.3 percent increase. The modest rise in core capital goods, a key proxy for future business investments, hints at ongoing hesitation among firms to commit to large-scale projects amid broader economic uncertainty. Shipments of these core capital goods—important for GDP calculations—dipped by 0.1 percent, pointing to a pullback in business equipment spending….