Washington, DC, August 3, 2006--Factory orders rose 1.2% in June as new orders for ships more than doubled, the Commerce Department said Thursday.
Transportation orders climbed by 7.4% on across-the-board increases in all types of equipment. The biggest gain - 119% -- came in orders for ships and boats.
Excluding transportation, orders for factory goods rose 0.1% in June, the eighth increase in the past nine months.
Factory orders are up 7.6% year-to-date.
Economists were expecting a gain of 1.7% in June.
Much of the gain during June in orders came from the one-time jump in orders for military ships and big increases in orders for civilian and military aircraft.
Investment in business equipment softened.
New orders for core capital equipment increased 0.4% in June after a 1.3% gain in May.
Orders for durable goods in June were revised down to a 2.9% increased from 3.1% reported last week in the preliminary report.
Shipments of factory goods fell 0.3% in June after rising 2.5% in May. Shipments of nondurable goods dropped 0.7%, led by a 2.1% drop in chemicals. Shipments of most other kinds of nondurable goods fell modestly in the month, with only plastics and leather showing gains.
Factory shipments are up 6.9% year-to-date.
Unfilled orders for factory goods rose 1.6%, a sign future production could be strong.
Inventories increased 0.8%. The inventory-to-sales ratio rose to 1.16 from 1.15.
