RTTNews - While the Commerce Department released a report on Wednesday showing a continued increase in factory orders in the month of July, the pace of growth in orders came in well below what economists had been expecting.
The report showed that orders for manufactured goods increased by 1.3 percent in July following a revised 0.9 percent increase in June. Economists had expected orders to increase by 2.2 percent compared to the 0.4 percent originally reported for the previous month.
A notable increase in orders for goods meant to last for at least three years contributed to the increase in factory orders, with durable goods orders increasing by an upwardly revised 5.1 percent in July following a 1.1 percent decrease in 1.1 percent.
The increase in durable goods orders reflects an upward revision from the 4.9 percent increase that was reported last Wednesday.
However, the durable goods orders growth was partly offset by a drop in orders for non-durable goods, which fell by 1.9 percent in July after increasing by 2.8 percent in June.
A rebound in orders for transportation equipment contributed to the increases in durable goods orders and factory orders, with transportation equipment orders surging up by 18.5 percent in July after falling by 11.9 percent in June.
Excluding the increase in orders for transportation equipment, factory orders actually fell 0.7 percent in July compared to a 2.7 percent increase in the previous month.
The report also showed that shipments of manufactured goods were nearly unchanged in July after increasing by 1.8 percent in June.
At the same time, inventories of manufactured goods fell for the eleventh consecutive month, falling by 0.7 percent in July following a 1.1 percent decrease in June.
With shipments nearly unchanged and inventories falling, the inventories-to-shipments ratio edged down to 1.40 in July from 1.41 in June.
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