Factory Orders, Services Lift Outlook: “The Commerce Department said factory orders advanced 0.7 percent in June, after a revised 0.4 percent gain in May. Economists had expected orders to rise 0.5 percent.
The data were more upbeat than many June numbers and dovetailed with an Institute for Supply Management poll on Monday showing U.S. factories picked up their pace in July.
A separate ISM report on Wednesday showed that strength spilled into the service sector, which accounts for 80 percent of the U.S. economy. The ISM non-manufacturing index rose to 64.8 in July from 59.9 in June. Wall Street had expected a weaker 61.0 reading.
‘Both numbers suggest that there’s still strength in the economy,’ said Gary Thayer, chief economist at A.G. Edwards & Sons in St Louis, Missouri.
‘June factory orders were up for the second consecutive month, suggesting that the slower growth we saw in the second quarter may be temporary. The ISM non-manufacturing index shows that the service side of the economy continues to expand at a very robust pace,’ he said.”
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