ABBO News

Us Factory Orders Outperform Estimates in July

US Factory Orders Outperform Estimates in July

WASHINGTON – New orders for U.S.-manufactured goods increased more than expected in July, boosted by defense aircraft, but demand elsewhere was moderate amid higher borrowing costs.

Factory orders jumped 5.0% after falling 3.3% in June, the Commerce Department’s Census Bureau said on Wednesday. Economists polled by Reuters had forecast factory orders rebounding 4.7%.

Factory orders gained 0.4% year-on-year in July. Defense aircraft and parts orders soared 12.9% after declining 4.8% in June. Excluding transportation, orders rose 0.4% in July after gaining 0.1% in the prior month.

The government also reported that orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment dipped 0.1% in July as estimated last month.

Shipments of core capital goods decreased by 0.3% instead of 0.4% as reported last month.

Nondefense capital goods orders rebounded 42.0%, instead of 41.9% as initially estimated.

Shipments of those goods increased 4.9%, rather than 4.7% as initially estimated. These shipments go into the calculation of the business spending on equipment component in the gross domestic product report.

Business investment in equipment notched double-digit growth in the second quarter despite higher interest rates.

(Source: ReutersReuters)

author avatar
Zabih Ullah
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.