Last month, new orders for American made goods increased and orders for core capital goods were stronger than previously reported due to the business spending after Hurricanes Harvey and Irma hit. Factory goods orders jumped 1.2% while demand for goods rose as well. Factory orders were expected to increase 1% in August.
Non defense capital goods orders excluding aircraft reported a jump in 1.1% in August instead of a 0.9% increase that was reported last month. These capital goods orders rose 1.3% in July and shipments also jumped 1.1% compared to a 0.7% rise previously.
Strong business spending on equipment makes up 12% of the U.S. economy and has been growing at the fastest pace in almost 2 years in the second quarter.
Machine orders gained 0.3% in August after increasing 0.2% the month prior. Transportation equipment advanced as well at a 5.1% which reflected a 44.8% rise in civilian aircraft orders.