New orders for all factory goods are down 0.5 percent in September after falling 0.8 percent in August. The September result matches the consensus estimate of down 0.5 percent in the Econoday survey of forecasters. The decrease largely reflects declining transportation orders.

New orders for durable goods are revised to down 0.7 percent in September from down 0.8 percent previously reported. Durables fell 0.9 percent in August. Nondurable goods orders are down 0.2 percent in September after falling 0.7 percent in August.

New orders for all factory goods excluding transportation are up 0.1 percent in September after declining 0.2 percent in August while orders excluding defense are down 0.6 percent in September after down 1.0 percent in the prior month. Transportation orders are down 3.1 percent in September after falling 3.4 percent in August. Orders for defense capital goods are up 6.4 percent in September after a jump of 8.4 percent in August.

The so-called"core" new orders nondefense capital goods excluding aircraft are up 0.7 percent in September after being up 0.2 percent in August.

As evidenced in the gloomy ISM reports, manufacturing business has been contracting and forecasters look for no let-up in September. Expectations call for a decline of 0.5 percent.

Factory orders represent the dollar level of new orders for both durable and nondurable goods. This report gives more complete information than the advance durable goods report which is released one or two weeks earlier in the month.

Investors want to keep their fingers on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more moderate growth which is less likely to cause inflationary pressures. By tracking economic data like factory orders, investors will know what the economic backdrop is for these markets and their portfolios. The orders data show how busy factories will be in coming months as manufacturers work to fill those orders. This report provides insight to the demand for not only hard goods such as refrigerators and cars, but nondurables such as cigarettes and apparel. In addition to new orders, analysts monitor unfilled orders, an indicator of the backlog in production. Shipments reveal current sales. Inventories give a handle on the strength of current and future production. All in all, this report tells investors what to expect from the manufacturing sector, a major component of the economy and therefore a major influence on their investments.