U.S. Factories Rise in July Surpising Economists

The Commerce Department showed a bigger-than-expected 1.3 percent increase for new factories in July. Transportation orders jumped 3.2 percent. June's increase was also revised.

According to the Commerce Department, new factory orders in the United States jumped by 1.3 percent in July. The bigger-than-expected increase was helped by a rise in transportation orders.

Economists were expecting a 1 percent gain in factory orders in July. June's increase was revised up to a 2.1 percent gain from 1.7 percent.

Factory orders have risen for five months in a row.

Transportation orders jumped 3.2 percent after a 1.8 percent decrease a month earlier. Factory orders alone without transportation orders rose by 1 percent with the help in orders for metals, machinery and non-durable goods.

Another interesting number was the rise in durable goods by 1.3 percent. June's rise in durables was also revised up to 1.4 percent.

Inventories gained for the 10th time in 11 months, however, the inventory-to-shipments ratio dropped to 1.20 months supply from 1.22 percent. The drop is the lowest since July 2007.