Strong Demand for Autos ups July Factory Orders
A new data released by the United States Commerce Department showed that factory orders in the US has increased by 2.4 percent driven by strong performance by the automotive sector.
The US Commerce Department on Wednesday said that factory orders surged in July driven by the strong demand for automobiles and commercial aircrafts.
In a report, the Commerce Department said that factory orders in the United States increased by 2.4 percent, the biggest since March 2011. The surge in factory orders also erased the 0.4 percent decline in June.
The report also showed that the demand for motor vehicles increased by 9.8 percent during the month, the biggest increase in more than eight years.
Many analysis said that demand for automobile, which is be biggest since January 2003, showed that the auto market is now slowly making a come back following supply chain disruptions brought by the twin disaster that has struck Japan.
They also said that strong factory orders – one of the key economic indicators – showed that the US economy is moving forward to recovery, and not a double dip recession that was earlier reported by the media.
The manufacturing sector has been leading the US economy back to recovery since the global financial crisis officially ended a couple of years ago. But disruptions in supply chain and political turmoil continued to slow down recovery process.
Experts also suggest that another round of stimulus package by the Obama administration would help fuel the economy back to its strongest form in the coming months.