US manufacturing rebounds with 5% surge in new orders for July

Shipments also saw an uptick, increasing by 0.9 per cent to $593.8 billion, continuing a pattern of growth observed in five of the last six months. The boost in shipments suggests sustained momentum in manufacturing output, supported by growing demand for durable goods, especially transportation equipment, which surged by 34.7 per cent to $102.1 billion, the Census Bureau said in a press release.

Unfilled orders, a key indicator of future production activity, rose slightly by 0.2 per cent, reaching $1,386.3 billion, showing continued backlog in the industry. Meanwhile, the unfilled orders-to-shipments ratio fell to 6.76, down from 6.91 in June, indicating manufacturers are gradually working through order backlogs.

Inventories, reflecting the stock of goods held by manufacturers, grew by a modest 0.1 per cent to $859.4 billion. Durable goods inventories saw a small rise, with transportation equipment leading the increase. However, nondurable goods inventories remained largely unchanged, with a slight decline in food product inventories.

The July report signals a strengthening recovery in the US manufacturing sector, driven by robust demand for durable goods, particularly in transportation. As manufacturers work through their backlogs, the sector looks poised for further growth, offering a hopeful sign for the broader economy.

Fibre2Fashion News Desk (KD)