U.S. May factory orders fall -
Friday, July 2, 2004 2:55:05 PM
WASHINGTON (AFX) -- Orders for new U.S.-made factory goods fell for the second consecutive month in May, the Commerce Department said Friday
Orders fell a less-than-expected 0.3 percent in May after the prior month's losses were scaled back from earlier estimates. Economists surveyed by CBS MarketWatch had forecast an 0.8 percent decline in factory orders in May
Shipments from factories rose 0.3 percent in May, while inventories rose 0.5 percent in the month
April's factory orders were revised to a 1.1 percent fall from the initial estimate of a 1.7 percent fall
"The April/May decline most likely represents payback from an unsustainable surge in March; underlying trends are very strong," said Joshua Shapiro, chief U.S. economist at MFR, Inc
Economist John Ryding of Bear Stearns agreed, noting that he expects "orders to bounce back strongly in June." Orders for durable goods in May were revised downward to a 1.8 percent decline from the 1.6 percent drop estimated a week ago. Orders for nondurable goods rose 1.5 percent in May
Unfilled orders, a gauge of production bottlenecks, increased 0.4 percent in the month, after rising 0.7 percent in April
In May, orders for core capital goods fell 3 percent
The decline in durable goods orders was widespread
Transportation orders fell 2.9 percent, led by a 1.1 percent fall in orders for new autos
Orders for primary metals rose 3.6 percent after falling 4.4 percent in April. Orders for machinery fell 1.2 percent, while orders for computers and other electronics fell 2.6 percent in May. Orders for electrical equipment fell 4 percent in the month
Excluding transportation, total orders rose 0.2 percent. Total orders, excluding defense goods, were unchanged in May
In a separate report, the Labor Department said job growth in the United States slowed in June after three months of robust hiring |
