Friday, August 31, 2012

US factory orders rose 2.8 percent in July

Factory orders rose 2.8 percent in July, the biggest overall advance in a year, reflecting sizable gains in demand for motor vehicles and airplanes, the Commerce Department said Friday. Economists are also worried that companies are already postponing plans to buy new equipment and hire new workers because of the uncertainty over how the federal budget deadlock will be resolved, a development that would represent another blow for an already weak recovery. The strength in durable goods was led by a 53.9 percent surge in the volatile category of commercial aircraft while demand for motor vehicles climbed a strong 20.6 percent.

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