Factory Orders on the Rise in May

By Jon C. Ogg Updated Mar 26, 6:08PM EDT · Published Jul 2, 10:15AM EDT

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Factory orders in America rose by a slightly better than expected 2.1% in May, according to the Commerce Department. Both Bloomberg and Dow Jones had estimates for a gain of 2.0%. If you back out transportation, the gains were 0.6%, and excluding defense the orders were also up 2%.

The 2.1% gain in May comes to $9.9 billion, to a seasonally adjusted figure of $485 billion. An increase in aircraft orders helped to boost the number again. The durable goods orders were up 3.7%.

Consumer goods are less robust as the May orders only rose 0.5%, but that is after contracting in April and in March. An issue to be watched by economists is that inventories rose again, making a sixth month of building up there.

We would point out that more recent data was released by the ISM on Monday showing a resumption of manufacturing growth in June with a lag in employment. That is more current data than Tuesday’s May factory orders numbers.

The S&P 500 is still up almost six points and the DJIA is up 46 points after the news this morning.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.