Factory Orders Up

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.