A worker peers inside an aircraft jet engine Sean Gallup, Getty Images

US Factory Orders Rebound in June

Transportation leads the way for factory orders, which increased 1.8% in June but remain down 5.9% compared with 2014.

Domestic orders for manufactured goods rebounded in June after two months of declines, boosted by strong gains in aircraft and other transportation equipment, the Commerce Department reported Tuesday.

Factory orders jumped 1.8% in June, matching the consensus estimate, following a 1.1% decrease in May.

Excluding transportation, which can be volatile, June orders rose a modest 0.5%. Transportation equipment surged 9.3%. Civilian aircraft orders soared 65.4%, with defense aircraft up 31.0%. Ships and boats orders gained 25.8%.

The June increase in orders was only the second in the past 11 months — orders were up 2.2% in March – amid lingering weakness in the manufacturing sector.

In the first six months of the year, factory orders were down 5.9% compared with the same period in 2014. Excluding transportation, they were down 6.5%.

Manufacturing, accounting for about three-quarters of total U.S. industrial output, has been under pressure from tepid consumer spending and a stronger dollar weighing on exports. It was unchanged for a second straight month in June, according to Federal Reserve data.

Copyright Agence France-Presse, 2015

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