New orders for U.S.-manufactured goods increased solidly in June and business spending on equipment was stronger than initially thought, pointing to underlying strength in manufacturing despite rising interest rates, Reuters reported. The Commerce Department said on Wednesday that factory orders rose 2.0% in June after advancing 1.8% in May. Manufacturing continues to grow, though its momentum has slowed as higher interest rates cool demand for goods. Spending is also reverting back to services. An Institute for Supply Management survey on Monday showed factory activity growing at a moderate pace in July, with a measure of new orders declining further as manufacturers worried about excess inventory. The increase in orders occurred nearly across the board in June. Some of the rise reflected higher prices. Orders for computers and electronic products surged 1.7%. Orders for electrical equipment, appliances and components rebounded 2.8%. There was also a 5.2% jump in orders for transportation equipment, which reflected a surge in orders for defense aircraft and parts. But orders for primary metals fell 1.0%.
