2 August 2001, 18:17  US June factory orders down 2.4 pct vs revised 2.2 increase in May

WASHINGTON (AFX) - Factory orders for manufactured goods fell 2.4 pct in June, the Commerce Department said. The drop was lower than expected. The consensus forecast of Wall Street economists polled by AFX News was for orders to fall 1.0 pct in June. Factory orders rose a revised 2.2 pct in May, higher than the initial estimate of a 2.5 pct fall. Year-over-year, factory orders were down 6.6 pct. Orders for durable goods fell a revised 1.7 pct in June, down from the original estimate of a 2.0 pct drop published last week. Manufacturing inventories fell 0.7 pct in June after a 0.6 pct fall the prior month. This is fifth consecutive decrease in inventories. Durable goods inventories fell 0.8 pct in June after declining 0.8 pct in the previous month. Unfilled orders, an indication of how busy factories will be in future months, fell 0.5 pct after a 0.8 pct fall in May. Factory shipments fell 2.8 pct in June after rising 2.4 pct in the previous month. The inventories-to-shipments ratio was 1.40 in June, up from 1.37 in May. The decline in June factory orders was led by computers and electronic products, transportation equipment, and primary metals. Computers and electronic equipment orders decreased 1.3 pct after rising 1.1 pct in May. Transportation equipment orders fell 3.3 pct in the month, following a 3.2 pct rise in May. Primary metals orders fell 2.3 pct in June, following a 7.0 pct increase in the previous month. Excluding transportation, orders fell 2.3 pct after a 2.0 pct rise in May. Fabricated metals orders fell 1.2 pct after rising 3.5 pct in May. Factory orders, excluding the defense sector, fell 2.3 pct after a 2.2 pct increase in May.

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