June Sees a Significant Decline in US Factory Orders

In a surprising turn of events, factory orders in the United States plummeted by 4.8% in June, reaching a total of $611.7 billion, as reported by the Census Bureau this Monday.

Durable vs. Nondurable Goods: A Tale of Two Trends

New orders for manufactured durable goods experienced a steep decline of 9.4%, settling at $311.8 billion. Conversely, manufactured nondurable goods orders saw a slight uptick of 0.5%, amounting to $299.9 billion.

Shipments and Inventories: A Mixed Bag

On a brighter note, shipments increased by 0.5% month-on-month, totaling $302.5 billion. Unfilled orders also rose by 1% to $1,469.9 billion. Meanwhile, inventories grew modestly by 0.2% to $588.6 billion, with the inventories-to-shipments ratio holding steady at 1.57, unchanged from May.