Factory orders whiff

US factory orders fell 1% in May, missing expectations.

Economists had estimated that orders fell 0.5%, after a revised print of -0.7% in the prior month, according to Bloomberg.

Excluding transportation, orders increased 0.1% in May from -0.1% in April.

Factory orders have fallen for nine out of the past 10 months.

Shipments fell 0.1% to $US482.1 billion, and inventories were virtually unchanged at $US649.7 billion.

New orders fell 2.2% to $US227.6 billion.

Orders for transportation equipment fell 6.5%, and orders for electrical appliances fell 2.8%.

In a preview of this week’s economic data, Barclays wrote: “The advance report on durable goods revealed that orders for durables fell 1.8% m/m, as a 35.3% m/m drop in nondefense aircraft orders outweighed modest 0.5% m/m growth non-transportation equipment. Prices, historically the best indicator for orders of nondurable goods, rose solidly in June on a seasonally-adjusted basis. As a result, we look for 1.6% m/m growth in nondurable goods to offset the decline in durables and leave total factory orders flat on the month.”

More to come …

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