RTTNews - With a jump in orders for non-durable goods more than offsetting a decrease in orders for durable goods, the Commerce Department released a report on Wednesday showing an unexpected increase in new orders for manufactured goods in June.
The report showed that orders for manufactured goods rose 0.4 percent in June following a revised 1.1 percent increase in May. Economists had been expecting orders to decrease by 0.8 percent compared to the 1.2 percent increase originally reported for the previous month.
A notable increase in orders for non-durable goods contributed to the unexpected growth, with non-durable goods orders increasing by 2.7 percent in June after rising 0.9 percent in May.
At the same time, orders for durable goods fell 2.2 percent in June following a 1.3 percent increase in May. The drop in durable goods orders reflects a revision from the 2.5 percent decrease that was reported last week.
The drop in durable goods orders was largely due to a 13.2 percent decrease in orders for transportation equipment. Orders for non-defense aircraft and parts and ships and boats showed notable decreases in June.
Excluding the decrease in orders for transportation equipment, orders for manufactured goods increased by 2.3 percent in June compared to a 0.9 percent increase in May.
The report also showed that shipments of manufactured goods increased in June following ten consecutive monthly decreases, rising by 1.4 percent.
A 2.7 percent increase in shipments of non-durable goods more than offset a 0.1 percent decrease in shipments of durable goods.
Meanwhile, the Commerce Department said that inventories of manufactured goods fell for the tenth consecutive month, falling by 0.8 percent in June following a 0.8 percent drop in May. This marks the longest streak of consecutive monthly decreases since March 2003-January 2004.
With shipments rising and inventories falling, the inventories-to-shipments ratio fell to 1.42 in June from 1.45 in May.
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