Factory Orders on the Rise in May

Before you go, we thought you'd like these...
Before you go close icon

SmokestacksFactory orders in America rose by a slightly better than expected 2.1% in May, according to the Commerce Department. Both Bloomberg and Dow Jones had estimates for a gain of 2.0%. If you back out transportation, the gains were 0.6%, and excluding defense the orders were also up 2%.

The 2.1% gain in May comes to $9.9 billion, to a seasonally adjusted figure of $485 billion. An increase in aircraft orders helped to boost the number again. The durable goods orders were up 3.7%.

Consumer goods are less robust as the May orders only rose 0.5%, but that is after contracting in April and in March. An issue to be watched by economists is that inventories rose again, making a sixth month of building up there.

We would point out that more recent data was released by the ISM on Monday showing a resumption of manufacturing growth in June with a lag in employment. That is more current data than Tuesday's May factory orders numbers.

The S&P 500 is still up almost six points and the DJIA is up 46 points after the news this morning.


Filed under: Economy
Read Full Story

Sign up for Breaking News by AOL to get the latest breaking news alerts and updates delivered straight to your inbox.

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners