Orders placed with factories in the United States increased to a record high in June that was bolstered by the strong demand for machinery, airplanes, and autos. Factory orders increased 1.5 percent in June compared to the data in May, when it got an increase of 3 percent. The gains in factory orders pushed the total to $496.7 billion.
June was the second month that factory orders have reached an all-time high. They surpassed the previous record set in June of 2008. The demand for factory goods dropped during the recession. Orders in vital category that tracks business investment increased 0.9 percent in June for the fourth straight monthly gain.
Manufacturing experienced some struggles in the first half of the year and was limited by weaker global growth and large government spending cuts. There are speculations that the trends may begin to change its course.
Orders for durable goods increased 3.9 percent in June. It represented a downward trend from the initial report that had place an increase at 4.2 percent. Orders for nondurable goods such as paper, chemicals, and food dropped 0.6 percent in June after it went up 0.8 percent in May.
Demand for machinery went up 2.6 percent in June. Oil and gas drilling equipment increased 44.1 percent. The demand for transportation products gained 12 percent, with a 32.1 percent advance in orders for commercial aircraft. Demand for autos increased 2 percent.
Aircraft orders remained volatile. Boeing got orders for 287 planes in June, which was up from 232 in May. Orders dropped 0.4 percent in June if transportation goods were excluded. This was down from a 1 percent rise in May.
The Institute for Supply Management’s index of manufacturing activity showed an increase to 55.4 in July. This was the fastest rate in two years and a gain from a June reading of 50.9.