Good news for U.S factories. The number of orders recorded in July for factory goods was the largest in nine month as a result of increase in demand. The Commerce Department announced Friday that the increase in new orders for manufactured goods has been 1.9%, the biggest increase month over month since October 2015.
This news is a positive development in a very uncertain global economic environment. Manufacturing, which accounts for about 12 percent of the economy, and is effected in a negative manner by the strong dollar and weakening global demand, which hurts exports of factory goods.
Non-defense capital goods excluding aircrafts, also known as core capital goods are seen as a measure of business confidence, or the willingness and ability of businesses to spend on equipment. Orders for machinery for example, have increased by 1.4%, the largest increase in six month. This is a sector that previously has been hurt by a weak demand from the energy, mining and agricultural industries.