US manufacturing sector recovery threatened by new coronavirus cases

Orders for key US-made capital goods excluding aircraft increased 3.3 percent last month, the most since July 2018.

It followed a 1.6 percent rise in May.

Core capital goods orders remained 3.2 percent below their pre-pandemic level.

Last month's orders were boosted by demand for machinery, fabricated metals, and primary metals.

Orders for appliances, components, and electrical equipment surged 1.2 percent, likely due to workers setting up home offices.

Core capital goods orders fell 2.3 percent on a year-on-year basis in June.

Shipments of core capital goods surged 3.4 percent last month, the biggest gain since November 2013, although it was 3 percent below the February level.

It rose 1.6 percent in May.

Orders for durable goods, meant to last three years, increased 7.3 percent in June after a 15.1 rebound percent in May.

It was driven by robust demand for motor vehicles, which surged 85.7 percent after increasing 28.8 percent in May.

However, new coronavirus cases are threatening the resurgence, forcing businesses in the South and West regions to either close businesses again or halt reopenings.