Factory orders rose more than expected in July, according to new government statistics released Friday. With the advance, the figure rebounded from a decline posted in the previous month.
The U.S. Department of Commerce revealed that factory orders rose by 2.8 in July. This followed a decline of 0.5 percent in the previous month.
Economists had expected factory orders to rise by 2.0 percent.
Excluding the transportation industry, factory orders were up 0.7 percent for July.
Orders for durable goods climbed 4.1 percent in the month. This was revised down slightly from an advance reading that was issued previously. The figure was originally estimated as a rise of 4.1 percent.
Durable goods orders measure orders for items meant to last at least 3 years - things like washing machines and jet engines. It is considered a good gauge of the health of the heavy manufacturing industry.
New orders for more disposable non-durable goods were up 1.5 percent for the month.
Factory shipments were up for the month as well. The figure rose 2.0 percent, bouncing back after a 1.2 percent retreat in June.
Inventories edged up as well, climbing by 0.5 percent. The advance took inventories to a level of $607.3 billion - the highest level since the figure began in 1992.
The factory orders report is part of a string of manufacturing-related releases that have come out recently.
Friday also saw the release of closely-watched regional survey.
The Institute of Supply Management - Chicago announced its report on business conditions in the Chicago area.
The Chicago PMI index came in at 53.0 for August. Any reading above 50 indicates expansion.
Earlier this week, manufacturing surveys released by the Dallas and Richmond Federal Reserve banks showed contractions for August. However, both reports showed a slower rate of decline for the month.
by RTT Staff Writer
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