New orders in the manufacturing sector surged 2.8% during July following an unrevised 0.5% June fall. Expectations were for a 2.0% increase. Durable goods orders surged 4.1%, little revised from last week's advance report of a 4.2% rise. A 14.4% rise (16.5% y/y) in transportation sector bookings drove the increase. Less transportation, total factory orders rose 0.7% (-0.6% y/y). Nondurable goods orders (which equal shipments) rose 1.5% (-0.6% y/y). That was led by a 2.7% gain (-2.5% y/y) in petroleum shipments with higher prices. Shipments of textile products rose 0.7% (4.7% y/y), basic chemicals shipments recovered 1.7% (-3.3% y/y) and shipments of paper products increased 0.7% (-1.6% y/y). 

Inventories in the factory sector rose 0.5% during July, the first rise after three months of decline. Nevertheless, the 3.1% y/y rate of inventory accumulation was down from its 13.6% rate one year ago. Lower rates of accumulation occurred across industries. Unfilled orders rose 0.8% (8.0% y/y) but growth has weakened considerably this year.

The factory sector figures are available in Haver's USECON database. The expectation figure is in AS1REPNA.