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US factory orders beat expectations in July, durable goods also rise

The July report showed factory orders up 0.9% and durable goods up 1.1%, but it pointed to weaker business equipment investment with a key measure revised to 0.0% from 0.2% expected.

Reported · Written up by our desk · Economy

US factory orders for July rose 0.9%, beating the 0.6% increase expected, according to Forexlive. The prior month was revised to -0.2% from -0.3%.

Durable goods orders increased 1.1% in July, versus a 1.1% preliminary reading, following a 0.5% gain in the prior month, Forexlive reported. Durable goods excluding defense rose 1.3%, while durable goods excluding transportation were unchanged at 0.4%, in line with the preliminary figures.

The report also highlighted uneven demand across categories. Durable goods nondefense capital ex air came in at 0.0% versus 0.2% expected, after a prior month reading of 1.7%, and Forexlive said this softer signal points to caution for business investment.

Forexlive characterized the overall picture as moderately encouraging: rising orders can support production, supplier demand, and hiring, but orders measure intended purchases and the strength was concentrated in transportation. It noted that higher dollar values can also contribute to the increase.

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