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Factory orders jump
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September 2, 1998: 10:43 a.m. ET
July orders climb 1.2%, biggest gain in eight months, but miss estimates
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NEW YORK (CNNfn) - New orders for goods manufactured in the United States grew at their strongest rate in eight months in July, albeit at a slower rate than expected, the Commerce Department reported Wednesday.
Total U.S. factory orders increased $4 billion, or 1.2 percent, to $335.2 billion, compared with June's revised 0.3-percent hike. Economists had forecast a 1.4-percent jump for July orders. July's gain was the fourth increase in the last five months.
Excluding the volatile transportation sector, new orders increased 1.4 percent.
The benchmark 30-year Treasury bond slipped 5/32 in price for a yield of 5.34 percent.
Bruce Bartlett, an economist at the National Center for Policy Analysis, said stock-market conditions likely will dictate whether consumer demand can keep up with the increase in orders.
"If the market falls back, consumers will probably pull back some," he said.
Inventories in July rose 0.3 percent to $468.1 billion, following a 0.2-percent jump in June. Shipments slipped 0.2 percent to $334.9 billion, compared with June's 0.4-percent increase.
The ratio of inventories to shipments was 1.40, up slightly from June's 1.39.
Stocks of unsold durable goods rose 0.3 percent to $297 billion. Nondurable stocks climbed for the seventh consecutive month, increasing 0.3 percent to $172 billion.
Unfilled orders for nondurables rose for the first time since April, climbing 0.1 percent to $529.8 billion, compared with June's 0.7-percent decline. Unfilled orders for durable goods also climbed 0.1 percent, with electronic and other electrical equipment logging the biggest increase, rising 3.8 percent to $59.5 billion.
The unfilled orders-to-shipments ratio was 2.73, down from June's 2.74.
New orders for manufactured durable goods increased 1.9 percent to $186.4 billion. This follows a 0.1-percent gain in June and is the third increase in the last four months.
New orders for nondurables rose 0.4 percent to $148.8 billion. 
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Commerce Department
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