U.S. Factory Orders Plunge More Than Expected In June

New orders for U.S. manufactured goods saw a steep drop in the month of June, according to a report released by the Commerce Department on Friday.

The report said factory orders plunged by 3.3 percent in June after falling by 0.5 percent in May. Economists had expected factory orders to tumble by 2.9 percent.

The sharp decline by factory orders came as orders for durable goods plummeted by 6.7 percent amid a 29.6 percent nosedive by orders for transportation equipment. Orders for non-durable goods edged down by 0.1 percent.

Meanwhile, the Commerce Department said shipments of manufactured goods rose by 0.5 percent in June after falling by 0.7 percent in May.

The report also said inventories of manufactured goods edged slightly lower in June after inching up by 0.1 percent in May.

With shipments rising and inventories dipping, the inventories-to-shipments ratio slipped to 1.46 in June from 1.47 in May.