U.S. factory orders grow slightly above expectations in July
U.S. factory orders grew strongly in the month of July, rising 6.4 percent sequentially. Today’s data was slightly above expectations of 6.1 percent. The bulk of the rebound was driven by durable goods orders. The outsized 11.4 percent sequential rise in durable goods orders in July was once again led by the motor vehicle and parts category. Nondurable goods orders rose 1.8 percent sequentially, following a strong 5.3 percent seen in the prior month. Today’s data places both durable and nondurable goods orders within reach of the pre-COVID-19 February levels.
On the inventories front, the inventory-sales ratios are much closer to where they had stood in February, implying some rebound in the alignment of inventories with sales, which in turn, should aid in stimulating production in the months ahead, said Barclays in a research report.