The U.S.
Commerce Department informed on Wednesday that the value of new factory orders surged
by 5.0 per cent m-o-m in July, following an unrevised
3.3 per cent m-o-m decline in June. This marked the strongest
monthly rise in factory orders since July 2020 (+6.1 per cent m-o-m).
Economists had predicted
a gain of 4.7 per cent m-o-m for July.
According to
the report, orders for durable goods climbed 9.8 per cent m-o-m in July, led by a jump in transportation
equipment (+34.7 per cent m-o-m). In addition, orders for nondurable goods
grew by 0.8 per cent m-o-m.
Total factory
orders excluding transportation, a volatile part of the overall reading, increased
by 0.4 per cent m-o-m (compared to an unrevised 0.1 per cent m-o-m uptick in June), while orders for nondefense capital goods excluding
aircraft, a measure of business spending plans, dipped 0.1 per cent m-o-m (compared to a 0.6 per cent m-o-m fall
in June).