Factory Orders Decline Again in August Ahead of Election Photo by BRENDAN SMIALOWSKI/AFP via Getty Images

Orders for manufactured goods dropped 0.2 percent in August, following a notable increase the previous month, as reported by the Commerce Department on Thursday. This decline marks the third decrease in orders within the last four months, signaling ongoing difficulties within the manufacturing sector.

Economists had predicted that orders would remain unchanged in August, reflecting a cautious outlook amid a mixed economic environment. The data revealed that orders for durable goods were adjusted to show no change for the month, a significant shift from July’s remarkable gain of 9.8 percent. This revision was a downgrade from an earlier estimate suggesting a modest increase of 0.1 percent.

While defense-related orders have contributed positively to factory activity this year, the overall picture remains concerning. When excluding defense goods, total orders fell by 0.4 percent in August, indicating the fragility of the broader manufacturing landscape.

In a slightly more positive note, orders for nondefense capital goods, excluding aircraft, rose by 0.3 percent in August, which is an upward adjustment from the initial estimate of a 0.2 percent gain. However, shipments of these key orders—crucial for government gross domestic product calculations—declined by 0.1 percent following a 0.4 percent drop in July.

The manufacturing sector continues to face challenges. The Institute for Supply Management’s manufacturing Purchasing Managers’ Index (PMI) has indicated contraction for most of the past two years. This persistent weakness raises concerns about the sector’s ability to contribute to economic recovery in the coming months and undermines claims made by Vice President Kamala Harris that the Biden-Harris administration has fostered a manufacturing boom

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