Orders for US-made factory goods rose 2.9 per cent in May amid a surge in orders for airplanes, the Commerce Department estimated today.
The data expand on a preliminary report on durable goods released on June 24th. Economists were looking for a gain of about 2.8 per cent in factory orders, according to a survey conducted by MarketWatch. It was the biggest gain in factory orders in 14 months.
Factory orders had increased 0.7 per cent in March and April after small declines in January and February. Orders are up 7.1 per cent in the past 12 months. Excluding the surge in civilian and defence aircraft orders, however, orders for factory goods fell 0.3 per cent in May. Shipments of factory goods were flat in May after a 0.7 per cent gain in April.
Shipments are up 7.5 per cent in the past year. Inventories increased 0.3 per cent in May, while unfilled orders rose 1.9 per cent. As in the preliminary report, orders for durable goods - such as airplanes, computers, and washing machines - increased 5.5 per cent in May.
Demand was weak outside the transportation sector, with orders for machinery falling 2.6 per cent and orders for electronics excluding semiconductors sinking 1 per cent. Orders for core capital goods (excluding aircraft and defence goods) fell 2.5 per cent in May after a 1.7 per cent gain in April.
Core capital goods orders are up 10.5 per cent in the past year, indicating robust demand for investment goods. Shipments of durable goods fell 0.2 per cent in May, while shipments of core capital goods increased 0.5 per cent.