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In this March 14, 2014 file photo, an assembly line worker works on a 2015 Chrysler 200 automobile at the Sterling Heights Assembly Plant in Sterling Heights, Mich. (Paul Sancya/AP)
In this March 14, 2014 file photo, an assembly line worker works on a 2015 Chrysler 200 automobile at the Sterling Heights Assembly Plant in Sterling Heights, Mich. (Paul Sancya/AP)

Transportation buoys new U.S. factory orders in July Add to ...

New orders for U.S. factory goods jumped in July on robust demand for transportation equipment, with the overall trend pointing to strengthening manufacturing activity.

The Commerce Department said on Wednesday new orders for manufactured goods increased a record 10.5 per cent. June’s orders were revised to show a 1.5 per cent increase instead of the previously reported 1.1 per cent rise.

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Economists polled by Reuters had forecast new orders received by factories advancing 11.0 per cent in July.

Orders excluding the volatile transportation category slipped 0.8 per cent in July. But that followed a 1.4 per cent increase the prior month, leaving the overall trend positive for manufacturing.

Manufacturing is accelerating, with the Institute for Supply Management reporting on Tuesday that its gauge of factory activity hit its highest level in nearly 3-1/2 years in August. In addition, a measure of new orders touched a 10-year high.

In July, orders for transportation equipment soared a record 74.1 per cent, reflecting outsized civilian aircraft orders received by Boeing BA.N that was flagged in the durable goods orders report published last week.

Capital goods orders surged a record 52.5 per cent. But orders for primary metals, machinery, computers and electrical equipment, appliances and components fell.

The Commerce Department also said orders for durable goods, manufactured products expected to last three years and more, increased 22.6 per cent in July, as reported last week.

Durable goods orders excluding transportation slipped 0.7 per cent instead of the previously reported 0.8 per cent fall.

Orders for non-defense capital goods excluding aircraft – seen as a measure of business confidence and spending plans – declined by a slightly bigger 0.7 per cent. They were previously reported to have slipped 0.5 per cent.

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