US Factory Orders Increase For Third Consecutive Month In July

Factory Orders in the U.S. increased for the third consecutive month in July, rising 0.4% after a 1.5% increase in June and a 2.3% increase in May.

Economists originally anticipated factory orders to increase by 0.3%. There was also a 0.9% increase in orders for non-durable goods that offset a 0.1% dip in orders for durable goods.

Shipments in manufactured goods have increased 1.6% in July after a 1.9% jump in June, according to the Department of Commerce. Inventories of manufactured goods rose by 0.5% in July following a 1% increase in June.

Since shipments increased more than inventories, the inventory-to-shipment ratio dropped to 1.46 in July compared to 1.48 in June.

Overall orders increased 18% on a year-to-year basis. The rise in factory goods was primarily due to metal and machinery, while supply constraints depressed orders for electronics, computers, electrical equipment, appliances, and components.