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The numbers: Orders for durable goods rose 0.4% in August, the fourth straight gain but a more modest increase after three straight strong gains, the government said Friday.
Economists had forecast a 1.5% increase in orders for durable goods in August. Orders were up a revised 11.7% in July and 7.7% in June.
What happened: Machinery orders led the gain in August, rising 1.5%/
Stripping out planes and cars, orders also rose 0.4% in August. Transportation often exaggerates the ups and downs in orders because of lumpy demand from one month to the next.
Orders for motor vehicles and parts fell 4% in August after a 21.7% gain in the priot month.
Orders excluding defense goods rose 0.7% after a 10.4% gain in July.
Core capital goods rose 1.8% in August after a 2.5% rise in the prior month. Shipments of this critical sector rose 1.5%.
Big picture: Manufacturing has rebounded well from the shutdown due to the pandemic. Chicago Fed President Charles Evans said manufacturing firms have some advantages because they have an engineering environment and know how to keep people safe.
Market reaction: Stock futures were lower on Friday with major benchmarks, including the Dow Jones Industrial Average DJIA, +0.19% in danger of logging a fourth consecutive weekly loss.
