The US factory goods’ new orders posted their record biggest decline in August as the volatile aircraft orders plunged badly during the month.
The US Commerce Department report, released on Thursday, showed a significant drop of 10.1 percent in the new orders for manufactured goods. Market analysts say this was the biggest decline in records going back to 1992.
The core capital goods, which are considered to be a proxy category for business investment, managed to slightly increase 0.4 percent in August, after recording a 0.1 percent drop in July.
If the transportation orders, which were depressing due to a setback in the volatile aircraft component, were stripped out, the new orders for other manufactured goods were also disappointing.
According to a group of economists, the total new orders received by the US factories were predicted to decline 9.3 percent.
The financial experts expressed in the US manufacturing sector, saying it continued to expand even if the growth pace was moderate.
According to the Institute for Supply Management, its gauge of manufacturing factory activity showed growth at slower pace in September.
The transportation equipment orders fell 42.2 percent in August. The development was also made clear in the government’s report on orders on durable goods, released on September 25.
Meanwhile, the Commerce Department revised slightly lower its estimate for growth in non-defense capital goods orders, excluding aircraft during the month of August. According to the department, the slight drop in this gauge in July was smaller than earlier estimated.