Orders for Durable Goods Rise Slightly

Orders to U.S. factories for big-ticket manufactured goods rose just 0.3% in June to a seasonally adjusted $196.9 billion, boosted by gains in autos and electronic equipment, Commerce Department figures show. The increase in orders for durable goods--items expected to last at least three years--was less than the 0.6% analysts expected and followed a 0.8% gain in May, less than what the government previously estimated. Orders for transportation equipment rose a sizable 2.7%, led by an increase in demand for autos and car parts. Excluding the strength in transportation, overall orders for durable goods would have fallen 0.4% in June, the fourth decrease in the last six months. However, orders for industrial machinery, the category that includes computers, fell a sharp 5.4%, the second monthly decline in a row and the biggest drop since October. Although total orders in June grew less than expected, they still reflected a manufacturing sector that was reviving after a lengthy period of weakness in the last 1 1/2 years, when many Asian economies were stalled by a financial crisis.