U.S factory orders posted a stronger than expected rebound in May buoyed by orders of ships, boats and aircraft, according to figures released Tuesday by the Commerce Department.
The Commerce Department put the level of new orders for manufactured goods up $3.3 billion, a 0.7 percent increase that partially reverses two consecutive months of declines.
And although the April level of factory orders was revised down to a 0.7 percent decline from the 0.6 percent decline initially reported, the May increase comes in significantly higher than the 0.1 percent growth predicted by most economists.
Transportation orders were especially strong in May, posting a 2.7 percent increase.
Excluding transportation, new factory orders were up 0.4 percent, an increase that also reverses two consecutive months of declining orders.
New defense spending in May also boosted the overall level of new factory orders, with non-defense factory orders up 0.5 percent.
by RTT Staff Writer
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