Financial thoughts

New orders received by U.S. factories posted their first drop in five months in August, government data showed on Friday, going against Wall Street expectations that they would rise.

Orders fell 0.8% after rising 1.4% in July, which was originally reported as a 1.3% increase, according to the Commerce Department. Analysts polled by Reuters were expecting them to gain by 0.3%. The drop was the first since March, when they fell 1.9%.

Factory orders were also down when compared to August 2008, by 22.5%.

Unfilled orders dropped 0.4% in August. They have now fallen for 11 months in a row, which is the longest streak of consecutive monthly decreases on records dating to 1992, the Commerce Department said.

Inventories fell 0.8%. They have decreased for 12 months in a row, the longest streak since 2002.

Durable goods orders had their steepest drop, of 2.6%, since January, when they fell 7.8%. Orders of durable goods — big ticket items meant to last — were originally reported as declining 2.4% in August. 

Source