Forex News – U.S. factory orders grew more than expected in July

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Factory orders in the United States grew at the fastest pace in four months in July, a report showed today by the Department of Commerce. Automobiles and aircraft helped boost demand, though business equipment orders lagged.

Data show orders were up 2.4 percent, beating estimates for a 1.8 percent increase. June numbers were revised down to 0.4 percent.

A breakdown of the data indicate that vehicle orders climbed last month by the most since January 2003, possibly picking up pace after a slump due to the Japan earthquake that disrupted orders and the supply chain.

However, lagging behind were orders for business equipment like business machinery, computers and electrical equipment.

This was a burst of good news since earlier in the day there was disappointing employment data from the ADP non farm employment report which showed fewer jobs than expected were created in August, a total of 91,000 instead of the forecast 102,000.

Dollar got a brief boost but soon declined. USDJPY briefly jumped from 76.66 to 76.83 fifteen minutes after the news at 14:00 GMT but soon fell to 76.41 by 15:00 GMT.