Factory Orders Up Less Than Expected

Washington, DC, Sept. 2, 2009--New U.S. factory orders rose a less-than-expected 1.3 percent in July, as a rise in aircraft orders outweighed sluggish demand for nondurable goods, the Commerce Department said.

Analysts were expecting factory orders to rise 2.2 percent. The Commerce Department said factory orders rose for the fourth straight month after a 0.9 percent gain in June.

Orders for nondurable goods, which include textiles, paper and chemical products, slipped 1.9 percent, the largest drop since December.

Inventories fell 0.7 percent, the 11th straight monthly decline. Inventories of durable goods were down 0.9 percent, the seventh straight monthly drop. In addition, shipments from factories have declined in 11 of the last 12 months and unfilled orders have declined 10 straight months.