Factory Orders: Fall in August
October 5, 2016
Bottom Line: Factory orders increased modestly in August, decelerating from July's pace, which was revised modestly lower. However, the growth rate has been declining over the past 18 months and is now -2.2% year-over-year. And with two months in the books for 3Q-16 data, this would suggest equipment spending was a modest drag on 3Q-16 GDP with the government's advance estimate due on October 28th. Factory Orders ROSE by 0.2% in August, compared with market expectations for a decline of 0.2%. The prior month's gain was revised lower from 1.9% to 1.4%. Durable goods orders climbed by 0.1%, as previously reported, while nondurable goods orders jumped by 0.2%. Excluding orders for defense goods, civilian aircraft and petroleum products, (so called) core factory orders ROSE by 0.3%.
Article by Contingent Macro Advisors