Finance

U.S. factory orders rebound strongly in May By Reuters

© Reuters. FILE PHOTO: A worker in a forklift lifts a fresh slab in the factory of IceStone, a manufacturer of recycled glass countertops and surfaces, in New York City, New York, U.S., June 3, 2021. REUTERS/Andrew Kelly

WASHINGTON (Reuters) – New orders for U.S.-made goods rebounded sharply in May, while business spending on equipment remained solid, despite bottlenecks in the supply chain.

The Commerce Department said on Friday that factory orders surged 1.7% in May after slipping 0.1% in April. Economists polled by Reuters had forecast factory orders rebounding 1.6%. Orders increased 17.2% on a year-on-year basis.

Manufacturing accounts for 11.9% of the U.S. economy. Massive fiscal stimulus boosted demand for long-lasting manufactured goods during the COVID-19 pandemic, with millions of American working from home and learning remotely.

Factories are struggling to keep up as the pandemic fractured supply chains and disrupted the global shipping industry. The Institute for Supply Management reported on Thursday that manufacturing activity grew moderately in June.

Factory goods orders in June were boosted by a 7.7% surge in orders for transportation equipment. Orders for electrical equipment, appliances and components rose 1.3%.

Unfilled orders at factories rose 0.8% after gaining 0.4% in April. The Commerce Department also reported that orders for non-defense capital goods, excluding aircraft, which are seen as a measure of business spending plans on equipment, edged up 0.1% in May instead of dipping 0.1% as reported last month.

Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, increased 1.1%, upwardly revised from the 0.9% rise estimated last month.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button