Strong aircraft demand lifts US factory orders

Washington - The Commerce Department said on Tuesday new orders for manufactured goods increased 1.8 per cent after declining 1.1 per cent in May.

New orders for US factory goods rebounded strongly in June on robust demand for transportation equipment and other goods, a hopeful sign for the struggling manufacturing sector.
The Commerce Department said on Tuesday new orders for manufactured goods increased 1.8 per cent after declining 1.1 per cent in May.
Factory activity has been stymied by a strong dollar and spending cuts in the energy sector after last year's sharp plunge in crude oil prices. Tepid global demand also has weighed on manufacturing, which accounts for about 12 per cent of the domestic economy.
Those factors have eroded the profits of multinational companies like Caterpillar, Procter & Gamble, the world's largest household products maker, and Whirlpool, the global home appliances giant.
Though there are signs that the energy spending drag is easing, the dollar's strength will likely remain a constraint. The dollar has gained 15 per cent against the currencies of the United States' main trading partners since June 2014. Orders for transportation equipment surged 9.3 per cent in June, reflecting a 65.4 per cent jump in aircraft bookings. There also were increases in orders for machinery, furniture, fabricated metal products and electrical equipment, appliances and components.