Factory orders dropped 3.3% in August the Commerce Department announced Thursday. Economists were looking for a 2.6% decline after a sharp increase of 3.7% in July. Demand for durable goods, products designed to last at least three years, declined 4.9% and non-durable good orders fell 1.6%. Transportation equipment orders were down 11.1%, motor vehicle orders decreased by 8.5%, and demand for non-defense aircrafts dropped 39.9%. "The volatility in financial markets in recent months probably introduced an element of caution in ordering," said Michael Moran, chief economist at Daiwa Securities America Inc. Though the numbers were disappointing, the markets actually are up since the announcement, perhaps exhibiting that investors saw the figures as further evidence the Fed should look to cut rates in its next meeting in late October.
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