Orders to U.S. Factories Rose in June Pointing to Growth Pickup
By Michelle Jamrisko - Aug 2, 2013
Orders placed with U.S. factories rose in June, pointing to further stabilization in manufacturing that may help lift second-half growth.
The 1.5 percent gain in bookings followed a revised 3 percent advance the prior month that was larger than initially reported, the Commerce Department said today in Washington. The median forecast of 60 economists in a Bloomberg survey called for a 2.3 percent increase. Demand for durable goods, those meant to last at least three years, rose 3.9 percent, down from figures reported last week.
Higher sales of automobiles and sustained demand in the housing industry, even as mortgage rates rise, are helping factories overcome weakness in orders from overseas. More progress in the labor market that added 162,000 jobs last month may be needed to convince consumers to spend more, supporting manufacturing and the expansion through the end of the year.
“Demand for manufactured goods has started to pick up in recent months, allaying concerns that manufacturing activity could be stalling,” Ryan Wang, an economist at HSBC Securities USA Inc. in New York, said in a research note before the report. The recent rise in orders is “pointing to stronger activity in the months ahead.”
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http://www.bloomberg.com/news/2013-08-02/orders-to-u-s-factories-rose-in-june-pointing-to-growth-pickup.html