New orders for manufactured goods declined slightly in August to $326.6 billion, according to the Department of Commerce, Census Bureau.
This followed a 4.4% July increase. Year to date, new orders for 2002 were 2.4% below the same period a year ago.
Shipments decreased $1.9 billion, or 0.6% to $324.2 billion, following a 1.6% increase in July. Year to date, shipments for 2002 were 2.8% below the same period last year.
"This is consistent with many other indications that the manufacturing recovery stalled this summer," said Jim Haughey, Newport Communications' senior economist.
Haughey added that consumers boosted their spending in the summer for imported goods, homes and mortgages so that the GDP growth rate for the summer quarter was likely near 4%, keeping freight volume growing slowly.
Freight volume may grow very little in the current quarter. "Hurricane weather, war fear, rising unemployment, the depressed stock market and the summer buy-ahead of cars will combine to make consumers more cautious," Haughey said.