US factory orders rise 0.1% in August, meeting estimates

• July factory orders were revised to 0.8% from an earlier reading of 0.9%.

• Factory orders rose 0.1% in August, in line with the 0.1% forecast. The previous month's increase was revised downward to 0.8% from 0.9%.
• Orders excluding transportation increased 0.3%, down from 0.7% in the previous month.
• Durable goods orders were revised to a 0.1% decline from the initial flat reading.
• Excluding transportation, durable goods orders were revised to a 0.2% increase from 0.3%.
• Durable goods orders excluding defense were revised to no change from a 0.1% gain.
• Nondefense capital goods orders excluding aircraft held at 1.6%, matching the preliminary report.

August factory orders climbed 0.1%, meeting the consensus forecast and decelerating from a 0.9% advance in July, per the data release. Excluding transportation, orders rose 0.3%, compared with 0.6% in the prior month.

Revisions to durable goods were slightly weaker. Total orders were adjusted to a 0.1% drop, and orders excluding transportation were cut to a 0.2% rise. But the key indicator for business investment – nondefense capital goods orders excluding aircraft – maintained its 1.6% advance. That stands out as a brighter spot in an otherwise muted headline.

In a rapid assessment, the headline figure matched forecasts, offering traders no major shock. The deceleration in total orders and the downward revisions to durable goods point to weaker manufacturing activity, yet the robust gain in core capital goods offers some counterbalance. On its own, the data gives little impetus to alter views on the Fed’s next move or the trajectory of the dollar and bond yields.

The report from the Census Bureau measures the monthly, seasonally adjusted dollar value of new orders for manufactured goods, covering both durable and nondurable items. Market participants watch order data for signals on future output, while the ex-defense and aircraft capital goods measure is used to assess business spending on equipment.