US August factory orders fall 3.3 percent

Analysts polled by Reuters were expecting factory orders to slip 2.6 percent.

Orders were dragged down by a 39.9 percent tumble in the volatile non-defense aircraft category, and an 8.5 percent plunge in automotive orders, the sharpest decline in that category since December 2002, the Commerce Department said. Orders for all types of transportation equipment slid 11.1 percent.

However, even when transportation orders were stripped out, factory orders dipped 1.7 percent, the second decline in three months. Excluding defense products, orders slipped 3.8 percent.

Orders for non-defense capital goods excluding aircraft, viewed as a reliable indicator of business investment, fell 0.5 percent, a slimmer drop than originally reported.