Quantcast
Get breaking news alerts via email

Click here to manage your alerts
FILE - In this July 1, 2013 file photo, brewer Ken Hermann rolls a fresh keg of beer onto pallets at the Harpoon Brewery in the Seaport District of Boston. The Commerce Department reports on orders placed with U.S. factories in June on Friday, Aug. 2, 2013. (AP Photo/Charles Krupa, File)
Orders placed with U.S. factories up 1.5 percent
First Published Aug 02 2013 08:55 am • Last Updated Aug 02 2013 08:55 am

WASHINGTON • Orders placed with U.S. factories rose to a record high in June, boosted by strong demand for airplanes, machinery and autos.

Factory orders rose 1.5 percent in June compared with May, when orders had risen 3 percent, the Commerce Department reported Friday. The gains pushed total orders to a record $496.7 billion.

Join the Discussion
Post a Comment

It was the second month that factory orders have been at an all-time high, surpassing the previous record set in June 2008. Demand for factory goods had plunged during the recession.

Orders in a key category that tracks business investment rose 0.9 percent in June, the fourth consecutive monthly gain.

Manufacturing struggled in the early part of this year, held back by weaker global growth and steep government spending cuts. But those trends may be starting to reverse.

Orders for durable goods, items expected to last at least three years, rose 3.9 percent in June. That represented a slight downward revision from a preliminary report which had put the increase at 4.2 percent.

Orders for nondurable goods such as chemicals, paper and food fell 0.6 percent in June after a 0.8 percent increase in May.

Demand for machinery increased 2.6 percent in June, led by a 44.1 percent surge in oil and gas drilling equipment.

Demand for transportation products rose 12 percent, reflecting a 32.1 percent jump in orders for commercial aircraft. Demand for autos was up 2 percent.

Aircraft orders are volatile from month to month. Boeing said it received orders for 287 planes in June, up from 232 in May. Excluding transportation goods, orders fell 0.4 percent in June after a 1 percent rise in May.


story continues below
story continues below

The Institute for Supply Management reported Thursday that its index of manufacturing activity jumped to 55.4 in July. That was the fastest pace in two years and up from a June reading of 50.9. A reading above 50 indicates growth.

The gain in the index showed that factories revved up production to meet a surge of new orders in July.

Stronger growth at U.S. factories could aid a sluggish economy that has registered tepid growth over the past three quarters. And it could provide crucial support to a job market that has begun to accelerate but has added mostly lower-paying service jobs.

Businesses are placing more orders that are likely to be filled in the next few months. Steady gains in new-home sales and construction are supporting strong growth in industries such as wood products, furniture, and electrical equipment and appliances. And healthy auto sales are buoying growth in the production of metal parts and components.

Auto companies reported solid sales gains for July on Thursday. Ford, Chrysler and Nissan each saw sales grow 11 percent compared with the same month a year ago.

The economy grew at a lackluster 1.7 percent annual rate in the April-June quarter. That’s better than the 1.1 percent rate in the first quarter, but it’s still far too sluggish to quickly reduce unemployment.



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.