Factory Orders Tailspin From Aircraft Sales

By Chris Lange Published Oct 2, 10:55AM EDT

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Thursday morning the U.S. Department of Commerce released the reading on factory orders for August. The reading came in at -10.1%, which was lower than the Bloomberg estimate of -9.3%. The previous reading was 10.5%.

The August reading was recorded as one of the lowest readings for factories on record. This reading, as well as the previous one, were heavily influenced by demand for commercial aircraft.

As previously mentioned in the durable goods report for August, the orders for transportation equipment fell massively.

Looking at the previous reading, factory orders rose 10.5% in July, this was skewed by Boeing orders. Excluding transportation equipment, which includes both aircraft and vehicles, factory orders fell 0.8% in July. New factory orders for durables in August dropped a monthly 18.2%.

But there were important positives in the July report, including a sharp 1.2% rise for shipments and a 1.4% rise for shipments of non-defense capital goods excluding aircraft.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.