New orders for U.S. manufactured goods pulled back by more than expected in the month of July, according to a report released by the Commerce Department on Thursday.
The Commerce Department said factory orders fell by 0.8 percent in July after climbed by a downwardly revised 0.6 percent in June.
Economists had expected factory orders to drop by 0.6 percent compared to the 0.7 percent increase originally reported for the previous month.
The bigger than expected decrease in factory orders reflected a sharp drop in orders for durable goods, which plunged by 1.7 percent in July after climbing by 0.9 percent in June.
Meanwhile, the report said orders for non-durable goods edged up by 0.2 percent in July after rising by 0.4 percent in the previous month.
The Commerce Department also said shipments of manufactured goods were virtually unchanged in July after jumping by 1.0 percent in June.
Inventories of manufactured goods climbed by 0.8 percent in July following a 0.2 percent uptick in the previous month.
With inventories rising and shipments virtually unchanged, the inventories-to-shipments ratio inched up to 1.35 in July from 1.34 in June.