New Factory Orders Top Expectations

Washington, DC, Sept. 3, 2008--U.S. businesses stepped up their demand in July for capital equipment, the Commerce Department reported Wednesday.

Core capital equipment orders rose 2.5 percent, the government said. Overall new orders rose 1.3 percent in July, compared with 0.8 percent expected by economists.

Orders for durable goods rose 1.3 percent in July, while orders for nondurable goods rose 1.2 percent.

Manufacturers have been seeing a sharp slowdown in the U.S. economy offset by strong gains in foreign demand, helped by a weaker dollar which makes their products more competitive overseas.