US Factory Orders: Signs of manufacturing strength - Wells Fargo

According to analysts from Wells Fargo, the gain in factory orders in August (1.2%) is consistent with other manufacturing data that suggest the industry is expanding at a healthy clip. 

Key Quotes: 

“Durable goods orders rose 2.0 percent in August, which was stronger than the gain in last week’s advanced report. Nondefense capital goods orders ex-aircraft rose 1.1 percent and this is consistent with our outlook for equipment spending to continue on at a healthy pace through the rest of the year.”

“Factory inventories rose for a third straight month and point to total inventories boosting topline GDP in Q3. Moderate Growth in Nondurables.”

“Nondurables, the new information in this report, were a bit softer. Shipments rose 0.4 percent but are up 6.2 percent year to date versus a 3.4 percent rise in durables shipments. Higher prices for energy products in August helped to boost the nominal value of petroleum refinery shipments up 2.6 percent even as industrial output for this sector declined. Shipments of chemicals and plastics, however, declined.”