Factory orders rebound from summer swoon

By JEANNINE AVERSA

Associated Press

WASHINGTON – Orders to American factories rose by a surprising 2 percent in August, after posting a record drop the month before. A big jump in demand for airplanes and other transportation equipment led the way.

The Commerce Department reported today that total factory orders grew to a seasonally adjusted $382.5 billion in August, up from $375 billion the month before. It marked the third increase in the last four months.

August’s performance was stronger than many analysts were expecting. They had predicted factory orders would actually fall by 1.9 percent.

In July, factory orders fell by a record 8.1 percent, according to revised figures. That was even weaker than the 7.5 percent plunge the government estimated one month ago.

The Federal Reserve has boosted interest rates six times since June 1999 to slow the economy and keep a lid on inflation. On Tuesday, the Fed decided not to raise rates for a seventh time this year, but it still held open the door to further rate increases in the future should inflation flare up.

On Wall Street, the Dow Jones industrial average was up 93 points in morning trading despite investor anxiety about corporate profits. But the Nasdaq lost around 15 points.

Orders for transportation equipment, which posted the biggest increase, grew by 6.6 percent in August, mostly due to stronger demand for airplanes and aircraft parts, the government said. In July, transportation orders fell by a record 32.6 percent, an even sharper decline than the government previously thought.

Excluding the volatile transportation category, factory orders rose 1.3 percent in August, the fifth increase in the last eight months. The transportation sector swings widely from month to month because it includes costly items such as airplanes, ships and military equipment including tanks.

Orders for electronic and electrical equipment, including household appliances and communications equipment, went up by 2.7 percent in August, mostly due to higher demand for electronic components. The month before, such orders fell by a sharp 18.9 percent.

Durable goods, big-ticket manufactured items expected to last at least there years, saw orders rise by 2.9 percent, following a 13.2 percent decline. For nondurables, such as fuel, orders rose 0.9 percent after a 0.7 percent drop in July. Chemicals had the largest increase.

Industrial machinery orders, including those for computers and machine tools, up five of the last six months, rose 0.9 percent in August, down from a big 5.1 percent increase the month before.

Orders for primary metals, which includes steel, were flat in August after a 2.5 percent decrease.

Shipments, a barometer of current production, went up by 1 percent in August following a 1.7 percent decline.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Northshore School District bus driver Stewart O’Leary pictured next to his buses shattered drivers side windshield on Friday, Feb. 14, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
‘Put me in, coach’: Bus driver back at work after struck by metal bar

Stewart O’Leary, a Northshore employee, has received national attention for his composure during a frightening bus trip.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

An American Robin picks a berry from a holly tree on Thursday, Feb. 13, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Calling all birders for the annual Great Backyard Bird Count

The Audubon Society will hold its 28th annual Great Backyard… Continue reading

A view of one of the potential locations of the new Aquasox stadium on Monday, Feb. 26, 2024 in Everett, Washington. The site sits between Hewitt Avenue, Broadway, Pacific Avenue and the railroad. (Olivia Vanni / The Herald)
Initial prep work for AquaSox stadium to start, with $200k price tag

The temporary agreement allows some surveying and design work as the city negotiates contracts with designers and builders.

Aaron Kennedy / The Herald
The Joann Fabric and Crafts store at 7601 Evergreen Way, Everett, is one of three stores in Snohomish County that will close as part of the retailer’s larger plan to shutter more than half of its stores nationwide.
Joann store closure plan includes Everett, Arlington, Lynnwood locations

The retail giant filed a motion in court to close approximately 500 stores in the U.S.

Lynnwood
Lynnwood police: 1 suspect in custody, 1 at large after attempted carjacking

Beverly Elementary School went into a precautionary lockdown Thursday afternoon. Numerous officers continue to search for the second suspect.

Candidates announce campaigns for Everett city council seat

Ryan Crowther, founder of the Everett Music Initiative, will challenge incumbent Paula Rhyne for the District 2 seat.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.