U.S. Factory Orders Drop More Than Expected In May

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New orders for U.S. manufactured goods fell by more than anticipated in the month of May, according to a report released by the Commerce Department on Wednesday.

The Commerce Department said factory orders slid by 0.7 percent in May after plunging by a revised 1.2 percent in April.

Economists had expected factory orders to drop by 0.5 percent compared to the 0.8 percent decrease originally reported for the previous month.

The report said orders for durable goods slumped by 1.3 percent in May after tumbling by 2.8 percent in April, unrevised from the preliminary data published last week.

Orders for transportation equipment led the way lower once again, plummeting 4.6 percent in May following a 7.6 percent nosedive in April.

The Commerce Department said orders for non-durable goods also edged down by 0.2 percent in May after rising by 0.4 percent in the previous month.

Shipments of manufactured goods inched up by 0.1 percent in May after falling by 0.6 percent in April, while inventories of manufactured goods rose by another 0.2 percent.

With inventories rising by slightly more than shipments, the inventories-to-shipments ratio ticked up to 1.38 in May from 1.37 in April.

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