The U.S.
Commerce Department reported on Friday that the value of new factory orders declined
by 3.3 per cent m-o-m in June, following an unrevised
0.5 per cent m-o-m decrease in May. This marked the
steepest monthly drop in factory orders since January (-3.8 per cent m-o-m).
Economists had forecast
a fall of 2.9 per cent m-o-m for June.
According to
the report, orders for durable goods tumbled 6.7 per cent m-o-m in June, led by a plunge in transportation
equipment (-20.6 per cent m-o-m). In addition, orders for nondurable goods slipped
by 0.1 per cent m-o-m.
Total factory
orders excluding transportation, a volatile part of the overall reading, rose
by 0.1 per cent m-o-m (compared to an unrevised 0.7 per cent m-o-m decrease in May), while orders for nondefense capital goods excluding
aircraft, a measure of business spending plans, increased 0.9 per cent m-o-m (compared to a 0.9 per cent m-o-m fall
in May and instead
of jumping 1.0 per cent m-o-m as reported last month).