June Factory Orders Preview
June Factory Orders are expected to increase 0.7% following a 0.6% increase in May. Shipments are expected to gain 0.8% following a flat reading in May. Inventories are expected to increase 0.5% following a 1% increase prior, which would push the inventory-to-sales ratio to 1.24 from 1.23.
The June Factory Orders data will receive a strong boost from the durable goods sector, as the June Durable Goods report revealed a 0.7% increase in durable orders and a 0.5% increase in durable shipments.
The non-durable sector should also bolster June Factory Orders report, as the combination of government stimulus checks and rising energy prices should yield higher sales and fuel inventories.