US factory orders edge up 0.4 percent in July

FILE - In this Aug. 7, 2014 photo, a worker assembles construction supplies at Northeast Building Products in Philadelphia. The Commerce Department releases factory orders for July on Wednesday, Sept. 2, 2015. (AP Photo/Matt Rourke, File) FILE - In this Aug. 7, 2014 photo, a worker assembles construction supplies at Northeast Building Products in Philadelphia. The Commerce Department releases factory orders for July on Wednesday, Sept. 2, 2015. (AP Photo/Matt Rourke, File)

By Associated Press September 2, 2015 2 min read

WASHINGTON (AP) – Orders to U.S. factories posted a modest gain in July, helped by the biggest rise in motor vehicles orders in a year and a solid gain in a category that tracks business investment plans.

Factory orders rose 0.4 percent in July, the Commerce Department reported Wednesday. Orders had increased a much larger 2.2 percent in June.

The modest increase in factory orders in July suggests that manufacturing is still grappling with a variety of challenges, from falling energy prices to a stronger dollar, which hurts exports.

But a key category that tracks business investment plans climbed 2.1 percent, posting the strongest gain in 13 months.

For July, orders for motor vehicles surged 4 percent, the largest jump since July 2014.