New orders for U.S.-manufactured goods increased by 1.2% in August, according to a report released Wednesday by the Commerce Department. The rise follows a revised 2.1% decline in factory orders recorded in July.
The August data surpassed the expectations of economists, who had forecast a 0.2% increase in a poll conducted by Reuters. The monthly report provides a measure of activity in the nation’s manufacturing sector.
A significant factor in the overall increase was a 5.4% rebound in orders for transportation equipment, which had fallen 14.6% in the prior month. This category, known for its volatility, saw varied performance across its subsectors. Orders for motor vehicles and parts increased by 0.3%. In contrast, new orders for civilian aircraft and parts decreased by 15.1% in August.
Excluding the transportation sector, factory orders rose by 0.7%.
Several other sectors contributed to the month’s figures. Orders for electrical equipment, appliances, and components saw a 1.2% increase. However, orders for machinery declined by 0.8%, and orders for computers and electronic products fell by 0.4%.
The Commerce Department report also included data on other key manufacturing indicators. Unfilled orders at factories, a gauge of future production, rose by 0.2%. Shipments of manufactured goods, which are factored into calculations of gross domestic product, increased by 1.1% in August. Inventories at factories grew by 0.3%.
