Factory Orders in June Exceed Expectations

Orders to American factories for manufactured goods rose 0.7% in June, led by higher demand for autos and electronic equipment, the Commerce Department said. Analysts had expected an increase of at least 0.3%. The rise in factory orders in June followed a 1% increase in May, a little less than the government previously estimated. The June performance got a boost from a 2.3% increase in transportation orders. An increase in orders for autos and car parts more than offset a decline in orders for airplane and aircraft parts. Orders for electronic and other electrical equipment, the category that includes household appliances and communications equipment, rose 2.4%, following a drop of 0.9% in May. Orders for industrial machinery and equipment, the sector that includes computers, dropped 5.1% in June.