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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