2023-07-05 17:29:07
New orders for US-made goods increased less-than-expected in May, as a jump in civilian aircraft orders was partially offset by falling demand in other sectors amid rising interest rates.
The US Commerce Department said, on Wednesday, that factory orders increased 0.3 percent, following rising by the same rate in April.
Economists polled by Archyde.com had expected orders to rebound in the United States by 0.8 percent.
Orders rose 0.1 percent year-on-year in May.
The manufacturing sector, which accounts for 11.1 percent of the US economy, is declining due to higher interest rates and a shift in spending from goods to services, which are often bought on credit, in addition to companies managing their inventories carefully in anticipation of weak demand.
The Institute for Supply Management said its manufacturing purchasing managers’ index fell in June, the eighth month in which the index remained below 50, indicating a contraction in manufacturing volume, the longest since the Great Depression.
Orders for transportation equipment increased 3.8 percent in May, following increasing 4.8 percent in April. Orders for civil aircraft jumped 32.8 percent, but orders for vehicles fell 0.6 percent.
Machinery orders jumped 1.2 percent, while orders for computers and electronic products increased 0.3 percent.
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