Factory Orders Rose 4.7% in July, Commerce Dept. Reports

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New orders at U.S. manufacturers rose 4.7% in July, the Commerce Department said Thursday, which was the biggest increase since October 2001 and matched analysts’ expectations.

Since new orders for factory goods are a harbinger of future production and shipments, the report appears to be a positive sign for trucking.

However, in a less positive sign for manufacturing, the Institute for Supply Management said earlier this week its index of new orders showed demand contracted in August for the first time in nine months. (Click here for the full story.)

In other economic news, the Labor Department said productivity of U.S. workers rose at a 1.5% annual rate in the second quarter and the number of workers applying for unemployment benefits for the first time fell by 8,000 last week. (Click here for the full story.)

July’s increase followed a revised 2.5% drop the month before, Commerce said. Excluding transportation equipment, orders rose 1.8% after declining by the same amount the month before.

So far this year, factory orders are down 2.8% compared with the same seven months of 2001.

The rise was led by a 9.2% increase in bookings for durable goods, which account for more than half of all factory orders. Computer orders surged 19.9%, while demand increased 1.7% for motor vehicles.

Factory inventories fell 0.1%, the 18th straight decline, Commerce said. The inventory-to-shipments ratio fell to 1.31 months, from 1.33 months in June. The July ratio was the lowest since the government started keeping comparable records in 1992.

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