Economic Buzz: US factory orders slump 1.3% in July

A report released by the Commerce Department on Wednesday showed an extended slump by new orders for U.S. manufactured goods in the month of July.

The Commerce Department said factory orders fell by 1.3 percent in July after plunging by 4.8 percent in June.

Durable goods orders led the way lower once again, tumbling by 2.8 percent in July after plummeting by 9.4 percent in June due to a continued nosedive by orders for transportation equipment.

On the other hand, the report said orders for non-durable goods rose by 0.3 percent in July after climbing by 0.4 percent in June.

The Commerce Department also said shipments of manufactured goods jumped by 0.9 percent in July after increasing by 0.6 percent in June.

Inventories of manufactured goods also climbed by 0.3 percent in July after inching up by 0.2 percent in June, the report said.

With shipments increasing by more than inventories, the inventories-to-shipments ratio edged down to 1.56 in July from 1.57 in June.

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