U.S. factory orders rebound in June

Led by demand for aircraft, industrial machinery and computers and electronics, orders to U.S. factories increased in June, according to new figures from the Commerce Department,

Orders rose a seasonally adjusted 1.1 per cent compared to the previous month, the Commerce Department reported – a rebound from the fall-off of 0.6 per cent in factory orders in May.

An 8.4 per cent jump in demand for commercial aircraft fueled the latest gains. But there were additional increases outside this volatile category that point to businesses investing with the expectation of economic growth.

Orders for machinery rose 2.9 per cent. Excluding military hardware, factory orders rose 1 per cent in June from May. Over the past year, factory orders were up 2.5 per cent.

Manufacturing has rebounded as the weather improved, the Commerce Department report also noted.

The increased demand has fueled hiring. According to the U.S. Labor Department, employers added more than 200,000 jobs in July for the sixth straight month. Factories accounted for 28,000 new jobs in July. Over the past year, manufacturers have added 178,000 jobs, best 12-month stretch of hiring since November 2012.