JULY FACTORY ORDERS INCREASE 3.7%, NONDEFENSE CAPITAL X AIRCRAFT UP 1.7%
July orders for manufactured goods rose 3.7%, slightly better than analysts expected and stronger than the 1% increase in June. Ex-transportation equipment orders rose 2.4%. Durable goods orders were up 6%, virtually the same as last week’s advance orders numbers. Nondurable orders increased 1.3%. Nondefense capital goods ex-aircraft, one of the early indicators of business equipment investment, rose 1.7% slightly below the 2.2% increase in the advance report. New orders rose for most major categories except computers and electrical equipment. Motor vehicle orders increased 11% and nondefense aircraft orders were up 13%. Machinery orders increased 5.6%, driven by a 60% increase in construction equipment orders and a 10% increase in orders for industrial equipment; however, orders for material handling equipment and turbine and power equipment declined. Most of the nondurable goods categories showed modest gains with only a small decline in pharmaceuticals and a 3% decline in tobacco. Orders for defense capital goods rose 37% due to a doubling in defense communications equipment orders, a 16% increase in defense airline orders and strong gains in ship and navigation equipment. While today’s numbers show strong gains from June, the value of new orders for manufactured goods are unchanged from July of last year. Also reported in today’s numbers was a 0.2% increase in the value of manufacturers inventories and a 2.6% increase in manufacturers shipments between June and July.
Kathryn Kobe NTKN, Washington DC