Factory orders rise unexpectedly in June due to higher prices for petroleum products

Factory orders rise unexpectedly in June

WASHINGTON — Factory orders rose in June for the fourth time in five months, an unexpected gain and the latest sign that the ailing manufacturing sector is recovering.

The Commerce Department says factory orders rose 0.4 percent, after a 1.1 percent increase in May. Economists expected a 1 percent drop, according to a survey by Thomson Reuters.

A 2.7 percent rise in orders for nondurable goods, such as chemicals and textiles, was the most since June 2008 and drove the overall increase. Orders for petroleum and coal products jumped 13.2 percent, as the price of oil rose.

Orders for durable goods, big-ticket items such as aircraft and appliances, fell 2.2 percent.