New orders for U.S. manufactured goods rose by slightly more than expected in the month of May, according to a report released by the Commerce Department on Tuesday, with the increase largely due to a jump in orders for transportation equipment.
The Commerce Department said factory orders surged up by 2.1 percent in May following an upwardly revised 1.3 percent increase in April.
Economists had expected orders to increase by 2.0 percent compared to the 1.0 percent growth originally reported for the previous month.
Excluding a 10.9 percent increase in orders for transportation equipment, factory orders rose by 0.6 percent in May after edging up by 0.2 percent in April.
Orders for durable goods increased by 3.7 percent in May, reflecting an upward revision from the 3.6 percent growth reported last week. Durable goods orders rose by 3.6 percent in April.
The report also said orders for non-durable goods rebounded by 0.7 percent in May after falling by 0.7 percent in the previous month.
Additionally, the Commerce Department said shipments of manufactured goods rose by 1.0 percent in May following two consecutive monthly decreases.
Inventories of manufactured goods edged up by less than a tenth of a percent in May, although it still reflects the sixth straight monthly increase. The inventories-to-shipments ratio dipped to 1.30 in May from 1.31 in April.
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