Factory Orders Jump 3.7% In July

Aug 31, 2007 - Factory orders showed a notable increase in the month of July, according to a report released by the Department of Commerce on Friday, with a sharp rise in orders for durable goods contributing to the increase.

The report showed that factory orders increased by 3.7 percent in July following a 1.0 percent increase in June. The increase in the previous month was upwardly revised from the 0.6 percent growth originally reported.

The strong growth in factory orders was partly due to a sharp rise in durable goods orders, which rose 6.0 percent in July after rising 1.8 percent in the previous month. The increase was revised up from the 5.9 percent increase reported last week.

Strength in the transportation sector contributed to the jump in durable goods orders, with orders for transportation equipment rising by 11.0 percent in July.

The report also showed that orders for non-durable goods increased by 1.3 percent in July following a 0.2 percent increase in June.

The Commerce Department also said that shipments of manufactured goods rose 2.6 percent in July, while inventories of manufactured goods edged up 0.2 percent. Subsequently, the inventories-to-shipments ratio fell to 1.21 from 1.24 in the previous month.