U.S. factory orders dropped in the month. On a sequential basis, factory orders fell 0.1 percent following the rise of 1.4 percent in July. Consensus expectations were for a fall of 0.2 percent given last week’s advance durables estimate. Stripping the volatile non-transportation category, orders came in flat in August, widely consistent with readings recorded in the past few months.
Nondurable goods orders dropped 0.3 percent sequentially in August after a 0.7 percent rose in July. The previously published estimate of overall new orders for durable goods orders was unchanged at 0.2 percent sequentially in August, with new orders for ex-transportation durable goods also unrevised at 0.5 percent sequentially.
The advance estimate of core capital goods orders were revised down to a fall of 0.4 percent in August prior to last week’s advance estimate, and appears in line with weakness in equipment investment that is expected in the months ahead, said Barclays in a research report.
“The previous estimate of core capital goods shipments was also revised down by 0.1pp to show a 0.3 percent m/m August increase—which, directly, implies downward revisions to equipment investment in Q3 2019”, added Barclays.
