U.S. Factory Orders Rebound More Than Expected In August

New orders for U.S. manufactured goods rebounded by slightly more than anticipated in the month of August, according to a report released by the Commerce Department on Thursday.

The report said factory orders jumped by 1.2 percent to $471.7 billion in August after tumbling by 3.3 percent to $466.2 billion in July. Economists had expected factory orders to climb by 1.0 percent.

The bigger than expected increase in orders was partly due to a significant rebound in orders for transportation equipment, which spiked by 5.1 percent in August after plunging by 19.6 percent in July.

Orders for non-defense aircraft and parts soared by 44.8 percent, more than offsetting a 24.3 percent slump in orders for defense aircraft and parts.

Excluding the jump in orders for transportation equipment, factory orders rose by 0.4 percent in August after climbing by 0.5 percent in July.

The report showed notable increases in orders for primary metals, computers and electronic products, and electrical equipment, appliances, and components.

The Commerce Department also said shipments of manufactured goods increased by 0.5 percent during the month, while inventories of manufactured goods rose by 0.4 percent.