New orders at US factories rose 1 per cent in June as strong demand for computers and electronics outstripped weakness in transportation equipment, the US Commerce Department said today.
The June gain was in line with Wall Street expectations and followed an upwardly revised 3.6 per cent rise in May.
Orders for durable goods were revised up to show a 2 per cent gain in June. Computers and electronics orders jumped 10.8 per cent and machinery gained 4.0 per cent.
When the volatile transportation category, which declined 0.8 per cent in June, was excluded, new orders rose by 1.3 per cent.
US consumer spending advanced 0.8 per cent in June as shoppers took to car showrooms to enjoy sales incentives that helped keep inflation steady, a government report showed today.
Income in June rose 0.5 per cent, the Commerce Department said, slightly stronger than the 0.4 per cent gain analysts had expected. The increase in spending, which was already reflected in a report on second-quarter economic growth released on Friday, was as expected.
An inflation index contained in the spending and income report showed prices steady, both overall and excluding food and energy costs.