Following a significant decline in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Wednesday indicating that factory orders rebounded more than anticipated in July.
The Commerce Department revealed that factory orders surged by 5.0% in July after a sharp 3.3% drop in June. Economists had forecasted a 4.7% increase for July.
This rebound in factory orders was driven primarily by a 9.8% rise in durable goods orders, following a steep 6.9% decline in June. The transportation equipment sector was a major contributor, with orders soaring by 34.7%.
Additionally, the report noted a 0.8% increase in orders for non-durable goods in July, compared to no change in the previous month.
Furthermore, the Commerce Department stated that shipments of manufactured goods rose by 0.9% in July, building on a 0.6% increase in June.
Inventories of manufactured goods inched up by 0.1% in July, consistent with the slight increase observed in June.
As shipments grew at a faster rate than inventories, the inventories-to-shipments ratio decreased marginally to 1.45 in July from 1.46 in June.
