US factory orders fall more than expected in June

NEW orders for US-manufactured goods fell more than expected in June, but business spending on equipment was solid, as was initially estimated, government data showed on Friday (Aug 2).

Factory orders dropped 3.3 per cent after slipping 0.5 per cent in May, the Commerce Department’s Census Bureau said. Economists polled by Reuters had forecast factory orders falling 2.9 per cent.

The government also reported that orders for non-defence capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, increased 0.9 per cent in June, slightly revised down from the 1.0 per cent reported last month.

Non-defence capital goods orders plunged 22.5 per cent, instead of 22.4 per cent, as initially estimated. REUTERS