Factory Orders Tailspin From Aircraft Sales
Thursday morning the U.S. Department of Commerce released the reading on factory orders for August. The reading came in at -10.1%, which was lower than the Bloomberg estimate of -9.3%. The previous reading was 10.5%.
The August reading was recorded as one of the lowest readings for factories on record. This reading, as well as the previous one, were heavily influenced by demand for commercial aircraft.
As previously mentioned in the durable goods report for August, the orders for transportation equipment fell massively.
Looking at the previous reading, factory orders rose 10.5% in July, this was skewed by Boeing orders. Excluding transportation equipment, which includes both aircraft and vehicles, factory orders fell 0.8% in July. New factory orders for durables in August dropped a monthly 18.2%.
But there were important positives in the July report, including a sharp 1.2% rise for shipments and a 1.4% rise for shipments of non-defense capital goods excluding aircraft.
ALSO READ: 10 Companies Cutting the Most Jobs
Filed under: Economy