U.S. factory orders and job openings surge as manufacturing sector accelerates

July factory orders grew 0.9 percent, lifting the seven-month total to 6.5 percent higher than the same period last year, according to the Census Bureau. Excluding volatile transportation orders, durable-goods orders rose 7.6 percent, with primary metals up 14.4 percent and machinery up 12.3 percent. The Federal Reserve’s industrial production indexes show real output gains, with business equipment output up 0.8 percent in July and 6.6 percent year over year, marking the sixth straight monthly increase.

Manufacturing job openings climbed to 580,000 in July, a 35 percent rise, and durable-goods vacancies surged 68 percent. Productivity in durable manufacturing advanced at a 2.7 percent annual rate, while unit labor costs fell 1.6 percent, indicating a disinflationary effect. The Institute for Supply Management’s August survey reported an ISM manufacturing index of 54.6, its eighth month of expansion, highlighting strong growth in metals, machinery, computers and electronics.