US Factory Orders Rise 0.1% in August, Second Straight Monthly Gain
New orders for manufactured goods climbed to $663.5 billion in August, marking a second consecutive monthly increase.
New orders for manufactured goods edged higher in August, rising 0.1 percent to $663.5 billion, according to data released by the U.S. Census Bureau. The modest gain extended a two-month winning streak for factory orders, a closely watched indicator of industrial demand and broader economic momentum.
The August increase of roughly $0.7 billion follows a stronger 0.8 percent advance recorded in July, which was revised prior to the latest release. The back-to-back gains suggest manufacturers are sustaining demand even as broader economic conditions remain uncertain.
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Factory order data from the Census Bureau's Manufacturers' Shipments, Inventories, and Orders report captures new business commitments across durable and nondurable goods sectors. Consecutive monthly increases, even incremental ones, can signal stabilizing production pipelines and restocking activity among industrial buyers.
Analysts often treat the month-over-month trend in new orders as a leading indicator for future manufacturing output and capital expenditure decisions by businesses. A second straight monthly rise, however small, may offer some reassurance to investors and policymakers monitoring the health of the U.S. industrial base.
Continue reading at U.S. Census Bureau Economic Briefing Room.
