New orders received by factories fell in June, pulled down by weak demand for transportation equipment, government data showed on Wednesday.
The Commerce Department said orders for manufactured goods fell 0.8 percent after a revised 0.6 percent increase in May. Economists had forecast a 0.7 percent decline after a previously reported 0.8 percent rise.
Manufacturing has shouldered the economy’s recovery and the slowdown in factory orders in June further diminished prospects of a strong and swift step-up in growth after a very weak first half.
There was also some bad news in employment, layoffs are way up:
According to data from Challenger, Gray & Christmas today, job cut announcements in July totaled 66,414, up 60% from June and 59% higher than July 2010. July’s job cut announcement figure is the highest since March 2010 when 67,611 job cuts were announced.
“July marks the third consecutive increase we have seen in monthly job-cut announcements, which certainly seems to provide additional evidence that the recovery has stalled. What may be most worrisome about the July surge is that the heaviest layoffs occurred in industries that, until now, have enjoyed relatively low job-cut levels, including pharmaceuticals, computer and retail,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.
Tomorrow morning the unemployment numbers for July are to be released. The June percentage of 9.2% was a tenth of a point higher than May. My prediction for July? Well I would trust the guy below holding the sign.