U.S. Factory Orders Jump 1.1% In June, Much More Than Expected

(RTTNews) - After reporting a drop in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Tuesday showing that orders rebounded by much more than expected in the month of June.

The Commerce Department said factory orders jumped by 1.1 percent in June following a revised 0.6 percent decrease in May.

Economists had been expecting orders to increase by about 0.6 percent compared to the 0.5 percent drop originally reported for the previous month.

The report said factory orders still increased by 1.1 percent in June when excluding orders for transportation equipment.

The bigger than expected increase in factory orders was partly due to a 1.7 percent jump in durable goods orders, which was upwardly revised from the previously reported 0.7 percent increase.

Orders for non-durable goods also increased by 0.6 percent in June after dipping by 0.2 percent in the previous month.

Additionally, the Commerce Department said shipment of manufactured goods increased by 0.5 percent in June, while inventories of manufactured goods rose by 0.3 percent.

With inventories and shipments both rising, the inventories-to-shipments ratio came in unchanged compared to the previous month at 1.31.