The dollar value of new orders for all factory goods was down another 1.3 percent in July after retreating 4.8 percent in June, much of it owing to weaker transportation orders. The July decline was close to the consensus of down 1.4 percent in the Econoday survey of forecasters.

Excluding transportation, factory orders were up 0.6 percent from June.

Durable goods orders contracted 2.8 percent on the month after falling 9.4 percent in June, driven by a 9.5 percent drop in transportation equipment. Nondefense aircraft and parts plunged another 32.7 percent after collapsing 52.7 percent in June. Defense aircraft and parts rose 10.2 percent. Orders excluding defense contracted 1.1 percent.

Machinery orders were up 1.9 percent in July, primary metals up 1.6 percent, fabricated metal products up 0.7 percent, computers and electronic products up 0.5 percent, and electrical equipment, appliances, and components up 1.9 percent.

New orders for nondurable manufactured goods increased 0.3 percent on the month.

Unfilled orders were flat in July after rising 0.9 percent in June, with transportation equipment also unchanged, showing no momentum in the pipeline.

Shipments increased 0.9 percent in July after advancing 0.6 percent in June.

Factory orders represent the dollar level of new orders for both durable and nondurable goods. This report gives more complete information than the advance durable goods report which is released one or two weeks earlier in the month.

Investors want to keep their fingers on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more moderate growth which is less likely to cause inflationary pressures. By tracking economic data like factory orders, investors will know what the economic backdrop is for these markets and their portfolios. The orders data show how busy factories will be in coming months as manufacturers work to fill those orders. This report provides insight to the demand for not only hard goods such as refrigerators and cars, but nondurables such as cigarettes and apparel. In addition to new orders, analysts monitor unfilled orders, an indicator of the backlog in production. Shipments reveal current sales. Inventories give a handle on the strength of current and future production. All in all, this report tells investors what to expect from the manufacturing sector, a major component of the economy and therefore a major influence on their investments.