Orders for appliances, computers, cars, and other durable goods rose 1.8% in August though factory operators still face parts and labor shortages and increased material costs.
Source: U.S. Department of Commerce
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New orders for products expected to last at least three years increased 1.8% to a seasonally adjusted $263.5 billion in August compared with July, marking the biggest increase since May.
Orders increased 0.5% in July from the prior month, up from an earlier estimate for that month that had shown a 0.1% decline. Demand for durable goods has improved in 16 of the last 16 months.
Depleted business and retail inventories have contributed to increased demand for manufacturers, but supply chain challenges continue to hamper production and delay some shipments.
The Delta variant of Covid-19 that started its rise earlier during the summer presents another major threat.
New orders for nondefense capital goods excluding aircraft, a closely watched proxy for business investment, were up 0.5% in August compared with the previous month.