U.S factory orders rebounds in June, rises 3 pct sequentially

U.S. factory orders recovered in June following two straight monthly declines. Factory orders grew 3 percent sequentially in the month, consistent with consensus expectations of 3 percent. The durable goods side of this report was greatly known already given the preliminary June data released last week, noted Barclays. There, durable goods orders rose 6.4 percent sequentially, as non-defense aircraft orders aided in stimulating transportation orders by 19 percent on the month.

Core durable goods orders are now recorded as flat on the month as compared with 0.1 percent previously. The nondurable orders dropped 0.3 percent sequentially as against the projection of no change. Nondurable orders are little changed on the year, with July orders just a slight below December levels. Inventories also rebounded by 0.2 percent on the month after being unchanged in the second quarter.

Overall, the factory orders data were widely consistent with the assumptions and in line with the BEA’s estimates as contained in the advance release of the second quarter GDP. The Q2 GDP tracking estimate continues to be unchanged at 2.4 percent, stated Barclays in a research report.

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