U.S. reports slower rise in factory orders in July

U.S. factory orders rose at a slower pace in July, while the shipments declined in the month, the U.S. Commerce Department said in a report Wednesday.

In July, new orders for manufactured goods increased 2 billion U.S. dollars, or 0.4 percent, to 482 billion dollars, the report said. The new orders, which went up for two consecutive months, followed a 2.2 percent increase in June.

Transportation equipment orders, which included both aircraft and vehicles, led the increase, rising 5.5 percent to 84 billion dollars. Transportation orders are frequently volatile and are often stripped out to get a clearer view of underlying trends. Excluding transportation, new orders went down 0.6 percent in July, compared to a revised growth of 0.6 percent in June.

Shipments, down three of the last four months, fell 0.2 percent to 483.6 billion dollars in July.

The lackluster data on Wednesday suggest that manufacturing is still struggling with challenges such as slowdown in energy investment and a strong dollar. Endit