New figures released show that there was a 2.8% rise in orders placed with factories across the US during the month of July, with many of the orders going to car manufacturing facilities and commercial aircraft factories.
The increase represents the largest overall growth experienced in the sector in a year, and the Commerce Department highlighted that despite the fact that there was a drop in the amount of capital goods being ordered, the demand for commercial aircraft and motor vehicles was strong.
Many businesses are, however, remaining cautious, despite these encouraging figures. The economic trouble that is being experienced across Europe has some companies holding back from their plans to expand due to the threat that hangs over the export of American goods, as many European countries return to recession.
On the whole, however, the market it optimistic. One expert said: "The recent softness in manufacturing activity and capital spending is likely to continue, at least for several more months." He also added a cautious note, saying that "the strong overall orders increase in July did not change the fact that growth in demand for US manufactured goods has slowed, reflecting all the problems facing the economy at the moment."
Slowed is not the same as shrinking, however. The figures showed a 4.1% rise in the demand for items from bicycles to battleships which, while lower than the government's estimate, is still growth. This shows that the economy is still heading in the right direction, even if this is at a pace slower than hoped.
