US factory orders dive on fall in aircraft orders

(MENAFN- AFP) US manufacturing orders dived in August, nearly reversing July's gain, on a sharp drop in volatile Boeing aircraft orders, the Commerce Department reported Thursday.

New orders for manufactured goods fell 10.1 percent to $56.1 billion in August, following a 10.5 percent increase in July.

Most of the swing was due to aerospace giant Boeing, which had scored massive commercial jetliner orders in July.

Stripping out transportation, orders slipped a scant 0.1 percent in August.

The August fall came after two straight months of gains, and was much larger than the 9.3 percent decline estimated by economists.

Orders for durable goods, which account for about half of the manufacturing orders, dropped 18.4 percent.

Transportation equipment orders drove the decline, tumbling 42.2 percent, led by a 74.3 percent dive in nondefense aircraft orders. Orders for automobile production fell 5.4 percent, while computer orders slid 15.2 percent.

Orders for nondurable goods were down 0.4 percent.

Compared with a year ago, factory orders increased 4.3 percent, with ex-transportation orders up 2.5 percent.