Here come factory orders

The Commerce Department says factory orders advanced 1.8 percent in the month. Tepid global demand also has weighed on manufacturing, which accounts for about 12 percent of the domestic economy.

Though there are signs that the energy spending drag is easing, the dollar’s strength will likely remain a constraint. Ships and boats orders gained 25.8 percent.

Stocks on Wall Street were little changed, while prices for U.S. government debt fell. The US dollar was trading lower against a basket of currencies.

Excluding transportation, which can be volatile, June orders rose a modest 0.5 percent. There also were increases in orders for machinery, furniture, fabricated metal products and electrical equipment, appliances and components. Civilian aircraft orders soared 65.4 percent, with defense aircraft up 31.0 percent.

Factory orders rebounded a bit in June, a possible sign of firming in the beleaguered manufacturing sector, although some details were more mixed. Inventories rose again, increasing 0.6 percent to $403.0 billion.

Economists are hopeful that overall economic growth will revive further to around 3 percent in the second half of the year as continued gains in employment bolster consumer spending. June’s increase followed two consecutive monthly decreases.

Demand for durable goods, items expected to last at least three years, increased 3.4 percent in June, matching the estimate made last week in a preliminary report. Ex-transportation, they were down 6.5 percent. This reading has now been up in four of the past five months.