The U.S. Commerce Department reported on Thursday that the value of new factory orders rose 1.4 percent m-o-m in July, following a revised 0.5 percent increase in June (originally a 0.6 percent m-o-m gain). That was the largest monthly increase in industrial orders since August of 2018.

Economists had forecast a 1.0 percent m-o-m advance.

According to the report, orders for transportation equipment surged 7.0 percent m-o-m in July after growing 4.1 percent m-o-m in June. There were also gains in orders for computers and electronic products, and electrical equipment, appliances and components. Meanwhile, machinery orders dropped 0.8 m-o-m after rising 1.7 percent m-o-m in June.

Total factory orders excluding transportation, a volatile part of the overall reading, rose 0.3 percent m-o-m in July (compared to a 0.1 percent m-o-m drop in June), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, increased 0.2 percent m-o-m (compared to a 0.9 percent m-o-m climb in June). The report also showed that shipments of core capital goods fell 0.6 percent m-o-m in July, following a flat m-o-m performance in June.

In y-o-y terms, factory orders increased 0.4 percent in July.