Factory orders in US experience notable recovery to reach 5 percent in July
(MENAFN) In July, US factory orders experienced a notable rebound, climbing by 5 percent compared to the previous month. This marks the first increase after two consecutive months of declines, as reported by the Commerce Department on Wednesday. The total value of new purchase orders placed with manufacturers surged by USD28.2 billion, reaching USD592.1 billion. The revised figure for June showed a slight decrease, down to USD564 billion from the initially reported USD564.2 billion, reflecting a decline of 3.3 percent for that month.
Among the various categories, new orders for durable goods saw a significant boost in July, rising by USD25.9 billion, or 9.8 percent, to hit USD289.5 billion. This increase continues a trend of growth seen in five of the last six months. The standout contributor to this rise was the transportation equipment sector, which saw an impressive gain of USD26.3 billion, or 34.7 percent, bringing its total to USD102.1 billion. This sector's growth has been observed in two of the last three months.
On the other hand, new orders for non-durable manufactured goods also experienced a rise, albeit more modest. The total value for non-durable goods increased by USD2.3 billion, or 0.8 percent, bringing the figure to USD302.7 billion. This suggests a more stable growth pattern in comparison to the substantial gains seen in durable goods.
Overall, the July data indicates a robust recovery in factory orders following previous months' downturns, highlighting significant growth in specific sectors such as transportation equipment while showing steady improvement in non-durable goods.
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