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Factory orders up 1.1%
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July 2, 1999: 10:54 a.m. ET
May increase, led by transportation sector, tops economists' estimates
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NEW YORK (CNNfn) - Factory orders rose 1.1 percent in May, bolstered by new orders in the transportation sector, the U.S. government reported Friday - with the gain exceeding economists' expectations.
Orders received by U.S. factories rose $3.7 billion, or 1.1 percent, to the seasonally adjusted annual rate of $348.6 billion, the Commerce Department said. The increase from April surpassed the 0.9 percent consensus of economists surveyed by Reuters.
Factory orders for April were revised to a drop of 1.4 percent compared with the prior month; the figure was initially reported as declining 1.2 percent.
Transportation orders rose 9.5 percent in May, the biggest gain for any sector. Excluding the volatile transportation segment, total orders declined 0.1 percent, the first decrease excluding transportation since January.
The rise in orders is another sign of economic strength, following a gain for the fifth straight month in the National Association of Purchasing Manufacturer's index reported Thursday and Friday's better-than-expected increase in U.S. job growth.
The Treasury market had little response to the factory orders report. It was up 2/32, with the yield standing at 6 percent.
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Department of Commerce
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