The numbers: Factory orders in the US rose 6.2% in June to mark the second consecutive increase, indicating a steady upturn following widespread shutdowns in the early stages of the pandemic.
Economists surveyed by MarketWatch had predicted a 4.6% increase.
Even after a spike in coronavirus cases since June, initial evidence suggests that manufacturers made further progress in July. A survey of industry executives soared to a 15-month high, according to an accurate report from the Institute for Supply Management.
Read:Manufacturers are expanding for the third month in a row, but not all jobs are coming back
What happened: Durable goods orders rose by a revised 7.6% in July, the government said slightly higher on Tuesday than the initially reported 7.3% increase.
Orders for durable goods such as oil, chemicals and textiles and advanced 5%, said the Commerce Department.
Read:Work problems? Wave of relocation after economy reopened to fade in July after viral spiral
Big picture: The production side of the US economy was further strengthened in July, even though some states have imposed restrictions to combat the last peak of the coronavirus.
Still, production remains well below precision trends, and companies say they are still plagued by uncertainty. As long as the virus is not under control, US factories are expected to produce less goods with fewer workers, making it more difficult for the economy to fully recover.
Read: Economy suffered a massive dip of 32.9% in the second quarter, indicating a long-term recovery
Also:“A Huge Prosperity Economy” – Federal Aid prevents an even further collapse of GDP
Market response: The Dow Jones Industrial Average DJIA,
and S&P 500 SPX,
transactions fell slightly in Tuesday transactions.