US factory orders show biggest increase in 8 months in June

The U.S. Commerce Department's data revealed that the value of new factory orders rose by a seasonally adjusted 3 percent m-o-m in June, while economists had forecast factory orders gaining 2.9 percent m-o-m. That followed a revised 0.3 percent m-o-m decline in May (originally a 0.8 percent m-o-m decrease) and marked the first increase in new orders for US-made goods in three months and the biggest gain since last October.

According to the report, new orders for durable goods climbed by 6.4 percent m-o-m in June, supported by a 19 percent m-o-m surge in orders for transportation equipment, which in turn reflected a 131.1 percent m-o-m boost in civilian aircraft orders. Meanwhile, orders for non-durable goods fell by 0.3 percent in June.

Orders for nondefense capital goods excluding aircraft orders, seen as a measure of business confidence and spending plans, edged down 0.1 percent m-o-m in June, recording the first drop since December. Shipments of these so-called core capital goods rose 0.1 percent, while total shipments of manufactured goods dropped 0.2 percent m-o-m.