The U.S.
Commerce Department announced on Thursday that the value of new factory orders jumped
by 8.2 per cent m-o-m in May, following a downwardly revised
3.9 per cent m-o-m plunge (from -3.7 per cent m-o-m) in April. This marked the strongest monthly advance in factory orders since
July 2014 (+10.5 per cent m-o-m).
Economists had forecast
a climb of 8.2 per cent m-o-m for May.
According to
the report, orders for durable goods surged
16.4 per cent m-o-m in May, primarily reflecting a 48.3 per cent m-o-m soar in
transportation equipment. Meanwhile,
orders for nondurable goods inched up 0.1 per cent m-o-m.
Total factory
orders excluding transportation, a volatile part of the overall reading, increased
by 0.2 per cent m-o-m (compared to a downwardly revised 0.6 per cent m-o-m fall
(from -0.5 per cent m-o-m) in April), while orders for nondefense capital goods
excluding aircraft, a measure of business spending plans, went up 1.7 per cent m-o-m (compared to a 1.4 per cent m-o-m decline
in April and matching last month’s estimate).
On a y-o-y basis, factory orders grew 3.2 per cent in May.