New orders received by U.S. 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 0.6 percent increase in May. Economists had forecast a 0.7 percent decline. The report showed transportation orders dropped 8.6 percent in June after a 5.8 percent increase the previous month. Orders excluding transportation rose 0.1 percent in June after being flat in May. Unfilled orders rose 0.3 percent after increasing 0.9 percent in May. The moderate rise in unfilled orders suggested an easing in the disruption in production caused by a shortage of inputs from Japan after the devastating earthquake in March. Shipments rose 0.2 percent after being flat the previous month. Inventories increased 0.2 percent after rising 0.8 percent in May, indicating that stocks were not piling up, despite weak demand. The department said orders for durable goods, manufactured products expected to last three years or more, fell 1.9 percent instead of the 2.1 percent drop reported last month. Orders excluding transportation were up 0.4 percent instead of a 0.1 percent gain. Orders for non-defense capital goods excluding aircraft - seen as a measure of business confidence and spending plans - rose 0.4 percent in June rather than the previously reported 0.4 percent fall.
