US factory orders tumbled 3.3 per cent in July

0
316

470667db6df4f79373a29d2e26da8a0c US factory orders tumbled 3.3 per cent in July

FILE – In this May 25, 2017, file photo, an employee works on a factory floor at a Stihl Inc. production plant in Virginia Beach, Va. On Tuesday, Sept. 5, 2017, the Commerce Department reports on U.S. factory orders for July. (AP Photo/John Minchillo, File)

WASHINGTON — Orders at U.S. factories tumbled in July, dragged down by a sharp fall in orders for civilian aircraft.

The Commerce Department said Tuesday that factory orders declined 3.3

per cent
in July, after a 3.2

per cent
gain last month. July’s decline was mostly because of a 19.2

per cent
drop in orders in the volatile transportation equipment category. Orders for civilian aircraft — which can vary wildly from month to month — tumbled 70.8

per cent
in July after a 129.3

per cent
gain last month.

Excluding the transportation sector that includes aircraft, factory orders rose 0.5

per cent
in July after a tiny 0.1

per cent
uptick last month.

A category that serves as a proxy for business investment posted a solid 1

per cent
gain after a small 0.1

per cent
decline in June.

In recent months, U.S. manufacturing has been benefiting from a stronger dollar and an improving global economy. Growth has been picking up in Europe, Japan and parts of the developing world.

Despite the sharp fall in overall orders, the increase in the business investment category suggests companies are more optimistic about future demand from customers. A private survey last week showed that U.S. factories expanded at a brisk pace in August, another bright sign for the overall economy.

Orders for computers and electronic products rose 2.1

per cent
, and orders for electrical equipment, appliances and components rose 2.6

per cent
. Orders for autos and auto parts fell 0.9

per cent
.

Orders for durable goods — items meant to last at least three years — fell 6.8

per cent
after a 6.4 surge in June.

Source

LEAVE A REPLY