On Monday, US Commerce Department data had unveiled that new orders for US-borne factory goods crawled up in August, while data from July was revised higher, illustrating a sustenance in strength in factory activity despite concerns over an ostensible slowdown in US economic growth over Q3, 2021 amid a steep shortage in raw materials alongside a languishing labour market.
In point of fact, latest upbeat US Commerce Department data on new orders for US factory goods came forth just a couple of days after the Tempe, Arizona-based ISM (Institute of Supply Management) had said in a statement that its index for US manufacturing activity had expanded further to 61.1 in August compared to a reading of 59.9 a month earlier, suggesting a likely slowdown in US economic growth over third quarter of 2021 in context of a rapid build-up in price pressures alongside a waning of Government stimulus, could be countered up to some extent by a booming US factory activity accountable for roughly a twelve per cent of entire US economy.
US new orders for factory goods rise
According to US Commerce Department data, factory orders for US-borne goods stepped up by a 1.2 per cent in August, beating an analysts’ estimate of an increase of 1.0 per cent.
while data for July was revised higher to a 0.7 per cent compared to a prior 0.4 per cent. Adding to silver lining on a pluperfect US factory activity landscape that largely controvert a latest set of dismal manufacturing data from Asia, new orders for US factory goods spurred up 18.0 per cent compared to the same time a year earlier.
Meanwhile, addressing to a through-and-through optimism over latest Commerce Department data, a senior economist at Moody’s Analytics in West Chester, Ryan Sweet said, “Factory orders continue to climb, a good sign for manufacturing. However, manufacturing is still being tested by the global supply-chain issues”.