Manufacturing orders up 1.7 percent in June

WASHINGTON -- America's manufacturers saw demand for their products rise in June by the largest amount in three months, another encouraging sign that the fragile factory sector is on the mend along with the rest of the economy.

The Commerce Department reported Monday that orders to U.S. factories rose 1.7 percent from May, the second month in a row that orders went up. Gains were fairly broad-based, with orders rising for machinery, household appliances and automobiles as well as "nondurable" goods, such as food products and chemicals.

June's performance, which followed a 0.3 percent rise in May, was stronger than economists were expecting; they were forecasting a 1.5 percent increase in factory orders.

Monday's report, along with other recent data on factory activity, suggest the industry is turning a corner.

A report released Friday showed that manufacturing expanded in July for the first time in five months.