| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 0.0% | -0.2% to 0.7% | 0.1% | 0.9% | 0.8% |
Highlights
The dollar value of new orders for all factory goods edged up 0.1 percent in August, slightly higher than the consensus that had centered on flat orders. This is a slowdown from 0.8 percent in July, revised down from 0.9 percent.
Excluding transportation, factory orders rose 0.3 percent on the month after 0.7 percent in July. Excluding defense, orders were up 0.1 percent on the month after 1.0 percent.
Total durable goods orders contracted 0.1 percent in August, after rising 0.9 percent in July and 0.6 percent in June.
By contrast, nondurables goods orders were up 0.3 percent, but slowed down from 0.7 percent the previous month.
Shipments were flat on the month after rising 0.8 percent in July. Unfilled orders rose at a steady pace of 0.6 percent in August.
Market Consensus Before Announcement
Orders expected flat, reflecting durable goods already reported flat for August.
Definition
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.
Description
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.
