U.S. March Factory Orders Rise More-Than-Expected, Up By 1.7%

Washington, D.C. (AHN) - The U.S. factory orders for the month of June increased sharply on higher fuel prices, beating the market analysts' projection.

The Commerce Department reported on Monday that the new factory orders climbed up by 1.7 percent in June, after it was revised higher to 0.9 percent decline in May.

The market analysts had anticipated the increase in the orders of U.S.-made factory goods to rise by 0.9 percent in the month of June.

The U.S. goods orders for June, excluding orders for transportation products which tend to be volatile, jumped by 2.3 percent, the largest gain since April.

The report indicated that the orders for the non-durable goods, including food, chemicals, and petroleum and coal products, surprisingly edged up by 2.5 percent, compared to the rise of 1.7 percent gain in May.

The rise in the non-durable goods demand, which is the strongest gain since March, is partly driven by higher prices for commodities.

Demand for durable products had plunged 4.4 percent in January.

Orders for defense aircraft and parts declined by as much as 8.3 percent, compared to 14.7 percent rise in May.

While the orders for civilian aircraft and parts was up by 25 percent, compared to 6.0 percent rise in May.

Consumer-goods orders gained by 2.2 percent, with consumer durable goods orders declining by 0.1 percent.

June's orders for machinery increased 2.6 percent and orders for petroleum rose 5.6 percent.