WASHINGTON (MNI) - The value of new factory orders fell 2.4% in July, slower than the 3.5% decline expected in an MNI survey, as a slight downward revision in durables orders was partially offset by an increase in nondurable goods orders, data released by the Commerce Department Thursday morning showed.
The increase in nondurables orders meant total factory orders excluding transportation bounced back in July, up 1.2% after a 0.3% decline in June. Non-transportation durables orders were revised to a 0.8% decline after a 0.1% gain the previous month, an MNI calculation shows.
The rise in nondurable orders was led by a 7.0% surge in petroleum and coal products shipments following a mere 0.4% increase in June. Nondurables shipments are equivalent to orders in this report.
Durable goods orders are now reported to have declined 7.4% in July, revised down slightly from the 7.3% drop in the advance estimate.
Transportation orders plunged 19.4% in July after a 11.7% jump in June. Motor vehicles orders are now reported down 1.6%, while nondefense aircraft orders are now reported down 52.3% and defense aircraft orders fell 2.2%.
Overall factory shipments rose by 1.1% in the month, while nondefense capital goods shipments were down 1.5% and fell 1.7% excluding the civilian aircraft component.
Factory inventories were up just 0.2% in July as shipments increased, lowering the inventory-to-shipments ratio to 1.29 from 1.30 in June. Unfilled orders posted a 0.4% increase.
