MNI DATA ANALYSIS: US August Factory Orders Rise 2.3%>

--Factory Inventories -0.1%; Business Inventories Tracking +0.5%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The value of new factory orders rose 2.3% in 

August, slightly above the 2.2% increase expected by analysts in an MNI 

survey, data released by the Commerce Department Thursday morning 

showed. 

     Durable goods orders were revised down slightly to a 4.4% gain from 

the 4.5% increase reported in the advance estimate. Nondurable goods 

orders rose 0.2% on gains in beverages and paper. Nondurable goods new 

orders are equivalent to nondurable goods shipments in this report. 

     Factory orders excluding transportation were up 0.1% in the month 

following a 0.1% gain in July, continuing the string of gains that 

stretches back virtually uninterrupted for most of the past two years. 

Durables orders excluding transportation were revised down to a flat 

reading from the 0.1% gain in the advance report. 

     In addition, unfilled orders were +0.9 in August, showing steady 

demand for products. 

--TRANSPORTATION ORDERS RISE

     Transportation orders rose 13.1% in August, an upward revision from 

the 13.0% increase in the advance estimate. The unlisted transportation 

components were up 6.3% in the month, based on an MNI calculation. 

     Nondefense capital goods new orders rose by 7.2%, however they were 

down 0.9% when excluding aircraft. 

--INVENTORIES FALL, SHIPMENTS UP

     Factory inventories fell by 0.1% in August. In addition to this, 

the Commerce Department's advance report on inventories showed a 0.8% 

gain for wholesale inventories and a 0.7% rise in retail inventories. 

     While these data are eligible for revision, the levels as they 

stand now, combined with the 0.1% decline in factory inventories, would 

result in a 0.5% gain in August business inventories when that report is 

released on October 15, an MNI calculation showed. The revised 

wholesale data for August will be released on October 10 and could 

alter this projection. 

     Overall factory shipments were up 0.5% in the month on a 0.7% 

increase for durable goods shipments, complimented by a 0.2% rise in 

nondurable shipments. Nondefense capital goods shipments posted a 

gain of 2.7%, but were down 0.2% after excluding the civilian aircraft 

component. 

     Given the mix of inventories and shipments reported Thursday, the 

inventory-to-shipments ratio fell to 1.34 in August from 1.35 in July. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$]