US Factory Orders Rise 2.3% in August

New orders for U.S.-made goods recorded their biggest increase in nearly a year in August, boosted by a surge in demand for aircraft, but signs of weakness in business spending on equipment suggested that the manufacturing sector could be slowing.

Factory goods orders surged 2.3 percent, the largest increase since September 2017, the Commerce Department said on Thursday. Data for July was revised up to show factory orders falling 0.5 percent instead of the previously reported 0.8 percent drop.

Economists polled by Reuters had forecast factory orders rebounding 2.1 percent in August. Orders increased 8.6 percent on a year-on-year basis in August.

Manufacturing, which accounts for about 12 percent of the U.S. economy, is being supported by robust domestic demand, but momentum is expected to gradually slow amid worker shortages, an increasingly bitter trade war between the United States and China, a strong dollar and moderating global growth.

An Institute for Supply Management survey of manufacturers published on Tuesday showed factory activity retreated from a 14-year high in September.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza