- Beige Book
Business orders for U.S. factory goods soared by a record amount in July, owing to a substantial leap in contracts for commercial aircraft, adding to further signs of the American economy's resilience. Factory orders surged 10.5%, the biggest monthly increase since 1992, when the records began, compared to a revised 1.5% rise in the preceding month, the Commerce Department reported. Orders of durable goods including heavy machinery, aircraft and other items that are meant to last at least three years rose 22.6% in July. However, excluding transportation, orders declined as much as 0.8%.
Separately, according to the Fed's latest Beige Book, Federal Reserve districts registered moderate to modest economic pick up over the past six weeks as a booming auto industry and tourism continued to support growth. This is the third straight report in which all Fed's district banks reported modest, moderate or improving economic growth. The report also highlighted wage pressures amid skilled labour shortages. The report comes ahead of the central bank's policy making meeting scheduled for September 16-17. Scant evidence of wage pressures should provide the Fed with greater breathing room as it considers when to raise rates.
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