Factory Orders Fall More Than Expected

The export-hit factory sector is in the headlines with orders for August down 1.7 percent and under the Econoday consensus for minus 1.3 percent. Orders for non-durable goods, pulled down by price weakness for petroleum and coal products, fell 1.1 percent on top of July's 1.4 percent decline. Orders for durable goods, initially released last week, are revised down to minus 2.3 percent vs an initial decline of 2.0 percent. And swings in aircraft are not distorting the picture as the ex-transportation reading is down 0.8 percent in August following July's 0.7 percent decline.

Recent History Of This Indicator:
A monthly downswing in aircraft orders pulled down the durable goods report in August and is expected to pull down factory orders as well, by a consensus 1.3 percent. Factory orders have been struggling all year, pulled down by weak exports and moving steadily into year-on-year contraction.