New orders and shipments of manufactured goods fell for a second consecutive month in September -- the third decrease in the past four months.

The latest numbers are another blow to the manufacturing sector, which has been one of the hardest hit areas of the economy in the past two years. The sector continues to show weakness while other segments, such as consumer spending, have remained relatively healthy. Nevertheless, freight volume should continue to grow.
On Monday, the U.S. Commerce Department reported new orders fell 2.3% following a 0.4% August decrease. However, excluding orders for new transportation equipment, factory orders rose 0.6% during the month. For the year to date, new orders are 1.7% below the same period a year ago.
Shipments decreased 0.1% following a 0.7% August decrease. For the year to date, shipments are 2.2% below the same period a year ago.
New orders for manufactured durable goods also fell in September by 4.9%, revised from the previously published 5.9% decrease, while new orders for nondurable goods increased 0.9%.
Shipments of manufactured durable goods fell 0.9%, revised from the previously published 1.1% drop. Shipments of nondurable goods increased 0.9%.
The September manufacturing report from the Census Bureau is good news for dry van carriers but sour news for other carriers, said Newport Communications Senior Economist Jim Haughey. Consumer packaged goods sales increased strongly while equipment shipments declined for the second month.
"The fourth quarter got a slow start in October," Haughey said. "There have already been weak reports of chain store sales, auto sales, employment and consumer confidence. Nonetheless, freight volume should expand modestly through year-end because consumer income continues to expand and most U.S. export markets are strengthening."
Analysts believe with the continued weakness in manufacturing, the Federal Reserve may again cut interest rates, already at a four-decade low, at one of its two regularly scheduled meetings remaining this year.