Manufactured Goods Drop 0.2%, Economists Expect Flat Reading

  • Orders for manufactured goods dropped 0.2% in August
  • Third decline in four months
  • Economists expected a flat reading
  • Durable-goods orders revised to flat from initial 0.1% gain estimate
  • Defense goods driving growth in factory orders this year
  • Excluding defense, total orders down 0.4%
  • Nondefense capital goods excluding aircraft up 0.3%
  • Shipments fell 0.1%
  • Manufacturing sector weak with ISM PMI in contractionary territory except March

Orders for manufactured goods fell 0.2% in August, marking the third decline in four months and missing economists’ expectations of a flat reading. Durable-goods orders were revised to a flat reading from an initial estimate of a 0.1% gain. Defense goods have been driving growth in factory orders this year, while excluding defense goods, total orders dropped 0.4%. Nondefense capital goods excluding aircraft saw a 0.3% increase, up from the initial estimate of a 0.2% gain. Shipments also fell 0.1%, following a 0.4% drop in July. The manufacturing sector remains weak with the Institute for Supply Management’s PMI in contractionary territory except for March.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the decline in orders for manufactured goods, citing data from the Commerce Department and Wall Street Journal economists. It also includes relevant details on durable-goods orders, defense goods, nondefense capital goods, and shipments, as well as the Institute for Supply Management’s manufacturing PMI. The information is presented without any clear bias or exaggeration.
Noise Level: 3
Noise Justification: The article provides relevant information about orders for manufactured goods and their fluctuations, but it lacks a comprehensive analysis of the long-term trends or possibilities. It also does not hold powerful people accountable or explore consequences on those who bear risks. The article could benefit from more actionable insights or solutions.
Key People:

Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses orders for manufactured goods, which can impact the overall economy and GDP. It also mentions changes in durable-goods orders and shipments that affect various sectors of the manufacturing industry. This information is relevant to financial markets as it provides insight into the health of the economy and may influence investment decisions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text and it does not meet the criteria for being considered an extreme event as it’s focused on economic data and trends.
Move Size: No market move size mentioned.
Sector: All
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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