Factory orders in US see decline of 0.5 percent in May
(MENAFN) According to recent figures from the Commerce Department released on Tuesday, factory orders in the United States experienced a decline of 0.5 percent in May, marking the first decrease following three consecutive months of growth. The total value of new orders for manufactured goods fell by USD3 billion to reach USD583.1 billion during the month.
April's data was revised downward from an initially reported increase of 0.7 percent to a revised gain of 0.4 percent, with total orders for April adjusted to USD586.1 billion. This adjustment underscores the fluctuating nature of manufacturing activity amidst economic shifts and varying consumer demand.
In May, new orders for durable goods, which are items intended to last three years or more, showed a modest increase of USD0.2 billion, representing a 0.1 percent rise to a total of USD282.9 billion. This segment of manufacturing has now seen growth for four consecutive months, driven primarily by gains in transportation equipment, which rose by USD0.4 billion (0.5 percent) to USD95.3 billion.
Conversely, new orders for nondurable goods, which typically include items like food, clothing, and gasoline, decreased by USD3.2 billion, or 1 percent, to USD300.2 billion in May. This decline in nondurable goods orders reflects broader trends and challenges within specific sectors of the manufacturing industry.
The latest data offers insights into the dynamics shaping US manufacturing, highlighting both areas of growth and sectors facing contraction. The resilience of durable goods orders contrasts with the challenges in nondurable goods, underscoring the complex landscape of industrial production amidst evolving economic conditions.
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