U.S. factory orders Increase After increasing 1.5% and 2.3% in June and May, respectively, July saw an increase of 0.4% for the third consecutive month.
Economists initially expected factory orders to increase by 0.3%. Non-durable goods orders also increased by 0.9%, offsetting the 0.1% drop in durable goods orders.
According to data from the US Department of Commerce, shipments of manufactured goods in July increased by 1.6% after an increase of 1.9% in June. After an increase of 1% in June, finished goods inventories increased by 0.5% in July.
As shipments grew more than inventories, the inventory-to-shipment ratio dropped from 1.48 in June to 1.46 in July.
Total orders increased by 18% On a year-by-year basis. The growth of factory goods is mainly due to metals and machinery, while supply constraints have inhibited orders for electronics, computers, electrical equipment, electrical appliances and parts.
