US manufacturing shrank for the sixth consecutive month amid ongoing trade tensions, but there are signs of resilience with increased new orders and lower raw material prices. The report reflects complex cross-currents, including supply chain disruptions and legal challenges to tariffs, leading to a market decline. Meanwhile, other economic developments include a major AI funding round, a court ruling against Trump's military deployment in LA, and a resurgence in the US commercial paper market, highlighting varied economic dynamics.
China's economy shows signs of slowing as factory orders shrink and construction activity slows, raising concerns about growth amid challenges such as a global slowdown and a prolonged property bust.
US factory orders for manufactured goods dropped 2.1% in July, marking the first decline after four consecutive monthly gains. Economists attribute the decrease to higher interest rates impacting business equipment spending. Durable-goods orders fell 5.2%, while non-durable goods orders rose 1.1%. US stocks traded lower following the long holiday weekend.
US factory orders rose 0.4% in April, marking the fourth increase in the past five months, led by transportation equipment. Excluding that sector, orders were down 0.2%. Durable-goods orders rose 1.1% in April, while nondurable-goods orders fell 0.1%. Orders for nondefense capital goods, excluding aircraft, rose a revised 1.3% in April, led by computers and machinery.
