Increased orders bring hope to US industry
Orders to US factories rose 1.7% in June, the biggest gain in three months, a fresh sign that the battered manufacturing sector is turning a corner.
The solid increase reported by the Commerce Department today came after orders went up by a modest 0.3% in May.
The performance in June was stronger than economists were expecting they were forecasting a 1.5% rise in factory orders.
Gains were fairly widespread with orders going up for machinery, household appliances and cars as well as “nondurable” goods such as food products and chemicals.
Manufacturing has had the hardest time trying to get back on firmer footing after being knocked down by the 2001 recession. Faced with lacklustre demand at home and abroad as well as competition from a flood of imports, factories have throttled back production and cut jobs.
Today’s report along with other recent data on factory activity suggest that the industry is on the mend.
