US factory orders fell 1.3% in May, primarily due to a decline in bookings for commercial aircraft, according to the Commerce Department’s Census Bureau. Despite this, demand in other areas remained strong, partly driven by investment in artificial intelligence.
Details of the Decline
Orders for commercial aircraft dropped 51.8% after soaring 167.4% in April. Boeing reported receiving 27 aircraft orders in May, compared to 136 in April. However, orders for computers and electronic products rose 0.2%, and were up 13.0% year-on-year. Machinery orders surged 2.1%, with significant gains in orders for primary metals and fabricated metal products.
The Census Bureau also reported that orders for non-defense capital goods excluding aircraft rebounded 1.4% in May. Shipments of these core capital goods edged up 0.1%.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
