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American factory orders go down in July
In July, new orders for American products declined a bit more than anticipated, suppressed by dismal demand for aircraft, although indications of a pickup in business spending hinted that the manufacturing sector was still firm.
Factory goods orders headed south by 0.8%. June’s data was updated a bit downwards to demonstrate factory orders soaring by 0.6% instead of the previously posted 0.7% slump.
Market experts interviewed by Reuters had predicted factory orders diving by 0.6% in July. On a year-on-year basis, orders rallied by 8.3% in July.
Notwithstanding the sink in factory orders in July, manufacturing, accounting for nearly 12% of the American economy, is still firm. Additionally, released on Tuesday an Institute for Supply Management poll of manufacturers disclosed that factory activity speeded up to more than a 14-year maximum in August.
However, there’re fears that a worsening trade conflict between China and America could affect business confidence as well as undercut capital spending. Moreover, a firm greenback and also worker shortages are demonstrating momentum in the manufacturing sector.
Orders for transportation equipment went down by 5.2%, suppressed by a 35.4% dip in the volatile orders for civilian aircraft as well as parts. As for orders for defense aircraft and also parts, they sank by 34.4% in July. Additionally, in June, transportation orders rallied by 2%.
In July, orders for cars managed to surge. There were jumps in orders for primary metals, computers, electronic products, and machinery. As for orders for fabricated metal products, they dipped. The same is true for appliances, components, electronic equipment.
According to the Commerce Department, July orders for non-defense capital products without aircraft, traditionally considered to a gauge of business spending plans, surged by 1.6% versus a 1.4% leap recorded in June. In June, orders for these core capital products jumped by 0.8%.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.