US factory orders tumbled 3.3 percent in July

FILE - In this May 25, 2017, file photo, an employee works on a factory floor at a Stihl Inc. production plant in Virginia Beach, Va. On Tuesday, Sept. 5, 2017, the Commerce Department reports on U.S. factory orders for July. (AP Photo/John Minchillo, File)

By Associated Press September 5, 2017 2 min read

WASHINGTON (AP) – Orders at U.S. factories tumbled in July, dragged down by a sharp fall in orders for civilian aircraft.

The Commerce Department said Tuesday that factory orders declined 3.3 percent in July, after a 3.2 percent gain last month. July’s decline was mostly because of a 19.2 percent drop in orders in the volatile transportation equipment category. Orders for civilian aircraft – which can vary wildly from month to month – tumbled 70.8 percent in July after a 129.3 percent gain last month.

Excluding the transportation sector that includes aircraft, factory orders rose 0.5 percent in July after a tiny 0.1 percent uptick last month.

A category that serves as a proxy for business investment posted a solid 1 percent gain after a small 0.1 percent decline in June.

In recent months, U.S. manufacturing has been benefiting from a stronger dollar and an improving global economy. Growth has been picking up in Europe, Japan and parts of the developing world.