U.S. factory orders grew in June for the best performance of the past six months

Former U.S. Federal Reserve Board Chairman Alan Greenspan on the 4th published in the "Financial Times" wrote that in this global financial turmoil before the end, there will be more banks and financial institutions collapse. The U.S. Department of Commerce announced on the 4th of the data shows that in June this year, U.S. factory orders grew 1.7 percent to 457.6 billion U.S. dollars, the best performance for the past six months.

Data showed that U.S. factory orders in June mainly due to increase in primary metal products and the military orders increased significantly. Month, including iron and steel products, primary metals orders grew by 5.2 percent while orders for military capital increased by 16.9 percent, to double-digit growth for the second consecutive month, reflecting the United States in Afghanistan and the war in Iraq to strong demand.

In addition, in June U.S. auto orders grew by 2.3 percent, civilian aircraft orders fell 25 percent. Overall, total orders for durable goods accounted for more than a quarter of the orders for transportation products dropped by 2.7 percent.

If the removal of greater volatility of the transport orders for a product, the month factory orders grew 2.3 percent.

U.S. housing market bubble burst and loan crisis of the impact of continued weakness in U.S. manufacturing. The factory orders in June although the situation in the outside world had expected much higher than the 0.9 percent increase, but some economists said that given the current weak economic environment and severe inflation situation, the U.S. economic outlook is still not optimistic.

The loan-to-year crisis has been, Greenspan said the current crisis is the extent of one hundred years to see, "there may be some into bankruptcy edge of the banks and financial institutions depends on the Government come forward to save." Only when prices tend to Stability, the crisis will end.

Greenspan believes that strengthening the supervision of the disadvantages than advantages, not the right way to resolve the crisis. He said: "It was the regulation is the solution to the current crisis as an effective way, but from a historical point of view, the regulation failed to eliminate from the crisis."

Greenspan believes that the performance of global stock markets, the financial system can safely ride out the storm, the banks can obtain sufficient funds is essential.