New orders for US-made goods rose sharply in June and business equipment spending was stronger than initially thought, indicating strength in manufacturing despite rising interest rates.
The Commerce Department reported on Wednesday (3) that factory orders rose 2.0% in June, after advancing 1.8% in May. Economists polled by Reuters had forecast a rise of 1.1%. In the annual comparison, orders increased 13.5%.
Manufacturing continues to grow, although momentum has slowed as higher interest rates cool demand for goods. Spending is also turning to services.
Research by the Institute for Supply Management showed on Monday that US manufacturing activity grew at a moderate pace in July, with a measure of new orders falling further amid manufacturers’ concerns over excess inventories.
The increase in orders in June was almost widespread. Part of the increase reflects higher prices. Orders for computers and electronics rose 1.7%, while orders for electrical equipment, appliances and components gained 2.8%.
The Commerce Department also said that orders for non-defense capital goods, excluding aircraft – seen as a measure of companies’ equipment spending plans – rose 0.7% in June, up from 0, 5% as reported last month.
Source: CNN Brasil
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