US factory orders advance 1.8 percent in June
Source: AP
By MARTIN CRUTSINGER
WASHINGTON (AP) — Orders to U.S. factories increased in June, and a key category that reflects business investment plans posted a modest rise. But the gains weren't robust enough to suggest that the sluggish manufacturing sector is mounting a significant turnaround.
Factory orders advanced 1.8 percent in the month, the Commerce Department reported Tuesday. The jump, however, was fueled by a surge in demand for commercial aircraft, a volatile sector that can swing widely from month to month.
Meanwhile, a key category that serves as a proxy for business investment plans edged up 0.7 percent after declines in April and June. For the first half of the year, this category is down 3.5 percent from the same period a year ago and has dragged overall economic growth.
Manufacturing has been held back this year by a rising dollar and falling oil prices. The higher value of the dollar against foreign currencies makes U.S. goods more expensive and less competitive in major export markets. The lower oil prices have led energy companies to scale back their investment plans.
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FILE - In this Feb. 11, 2015, file photo, Mark Moriarty works on a John Deere Tracked Feller Buncher/Harvester at John Deere Dubuque Works in Dubuque, Iowa. The Commerce Department reports on U.S. factory orders for June 2015 on Tuesday, Aug. 4, 2015. (Jessica Reilly/Telegraph Herald via AP) MANDATORY CREDIT
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