US factory orders post large May increase

US factory orders post large May increase

Spurred by soaring demand for airplanes and parts, US factories orders recorded a 2.9 percent increase in May, the largest in 14 months according to the Commerce Department. The increase nearly met predictions of 3 percent and comes on the heels of two consecutive minor 0.7 percent increases in March and April. Performance across various manufacturing sectors, however, was inconsistent. Orders for aircraft, appliances, and furniture all gained while order for motor vehicles and steel were even. Factoring out aircraft and transportation, factory orders actually declined 0.1 percent in May but posted a month-to-month gain of 0.3 percent. The factory orders increase was the biggest since March 2004’s 5.5 percent increase and is a good sign that the manufacturing sector is strong despite high energy and raw materials costs.