US Factory Orders Rise, Job Worries Continue

Posted August 31st, 2011 at 11:00 am (UTC-5)
Leave a comment

Economic reports Wednesday showed the U.S. job market getting a bit worse, and business expansion slowing, while factory orders grew.

New orders for U.S. factory goods rose more than expected in July as demand for transportation equipment surged. Data from the Commerce Department shows orders growing 2.4 percent, a big change from the prior month that saw a decline.

A separate report from a business research group showed U.S. business activity continued growing in August, but at a slower pace than the prior month.

That downbeat report may be one reason that a company that processes millions of paychecks, ADP, says U.S. private sector jobs grew by 91,000 in August, less growth than the previous month.

Some economists watch the ADP report for clues about Friday’s government report on the net number of jobs gained across the nation. Experts surveyed by news agencies predict the data will show a net gain of 70,000 jobs in the government and private sectors. If that turns out to be true Friday, it will not be enough new jobs to reduce the relatively high 9.1 percent unemployment rate.