MNI DATA IMPACT: US June Factory Orders Up 0.6%>

--New Orders Ex. Transportation Up 0.1%, Nondurables Down 0.5%

--Factory Inventories Up 0.2%; Business Inventories Tracking +0.1%

By Kevin Kastner, Brooke Migdon, and Alexandra Kelley

     WASHINGTON (MNI) - The value of new factory orders rose by 0.6% in 

June, coming in below the 0.8% gain forecasted by analysts in an MNI 

survey and the 0.7% increase expected by the Bloomberg consensus, data 

released by the Department of Commerce Friday morning showed. 

     Durable goods orders improved dramatically, climbing to a 1.9% 

increase following 2.3% decline in May. Durable goods orders were 

originally reported up 2.0%. Nondurable goods orders fell by 0.5% on 

petroleum and coal products, after falling 0.3% in May.      

     Here are the key findings from the release: 

     - Factory orders excluding transportation were up 0.1% in the 

month. Durables orders excluding transportation were revised up to a 

1.0% gain from the previously reported 1.2% increase. 

     - Transportation orders were up 3.7% in June. The unlisted 

transportation components were up 6.1% in the month, based on an MNI 

calculation. Nondefense capital goods new orders increased by 4.4% and, 

when aircraft was excluded, rose by 1.5%. 

     - Factory inventories posted a 0.2% increase in June, and when 

combined with the previously released advance readings for retail and 

wholesale inventories show business inventories are tracking for a 0.1% 

gain. Updated wholesale trade data scheduled for release on August 8 

could alter this projection. 

     - Overall factory shipments were up 0.4% in the month on a 1.3% 

gain in durable goods shipments, partially offset by a 0.5% decline in 

nondurable shipments. Nondefense capital goods shipments rose by 1.3%, 

but posted a smaller gain of 0.3% after the civilian aircraft component 

was excluded. Given the mix of inventories and shipments, the 

inventory-to-shipments ratio fell slightly to 1.37% from 1.38 in May. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$]