Economy

Factory Orders Growth at Half of Expectations

With economists seeking any signs of life that they can find, all economic readings are being given a closer look than might be otherwise expected. The U.S. Department of Commerce reported its factory orders reading on Wednesday morning, but this is for the month of July. New orders for manufactured goods rose by $2.0 billion, or 0.4%, to $482.0 billion in July.

Dow Jones (Wall Street Journal) and Bloomberg alike had their consensus estimates pegged at a gain of 0.9%. This compared with a preliminary report of 1.8% gain in June, which was then revised higher to 2.2%.

Shipments were down yet again, three times in the past four months, and fell by $0.8 billion, or 0.2%, to $483.6 billion. Unfilled orders rose $2.8 billion, or 0.2%, to $1.198 trillion. The unfilled orders-to-shipments ratio was 6.89, down from 6.92 in June.

Inventories were lower as well in July, following three consecutive monthly increases, falling by $0.6 billion, or 0.1%, to $651.2 billion.

New orders for manufactured durable goods in July increased by $5.1 billion, or 2.2%, to $241.7 billion. Transportation equipment led this increase with a gain of $4.4 billion, or by 5.5%, to $84.0 billion.

New orders for manufactured nondurable goods decreased by $3.1 billion (1.3%) to $240.3 billion. Shipments of manufactured durable goods in July rose by $2.4 billion (1%) to $243.3 billion, and transportation equipment gained by $2.3 billion (2.9%) to $80.7 billion.

Petroleum and coal products have been steadily falling. They were down yet again, by $3.7 billion (7.0%) to $48.9 billion.

While economists are looking for signs of strength, this is a July reading. It was weaker than the revised data from June, but it was also before the broad-based economic malaise from China started coming down fast.

It is still early on to decide if this will impact gross domestic product forecasts for the third quarter, particularly as this July data was for the first month of the third quarter.

ALSO READ: The Top-Selling Products From Each State

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.