MAY FACTORY ORDERS UP 1.2% VS. REVISED 0.5% RISE PRIOR, EX-TRANSPORT ORDERS RISE 0.8%

Factory Orders came in better than expected in May, rising 1.2% to $347.9bln following a downwardly revised 0.5% increase to $343.8bln in April. Factory Orders Ex-Transports posted a 0.8% increase to $305.5bln while the April figure was revised down to a 0.2% decline to $303bln. Ex-Defense new orders gained 1% over the month following a 0.1% decline in April, Durable Goods orders gained 1.8% to $163.4bln while Ex-Transport Durable Goods Orders posted a 1.1% increase to $121bln.

Factory Orders have now risen three of the past four months but are still down 23.3% on a year-over-year basis. Also of note, Ex-Transport Orders are higher for the first time in three months, while Ex-Defense Orders are higher for the first time in ten months.

May Shipments were revised to show a 2.5% decline to $168.9bln, reflecting the tenth consecutive monthly decline. Unfilled Orders posted a modest 0.2% decline over the month, and are lower for the eight consecutive month.

Inventories posted a 1% decline to $322.1bln in May with inventories of primary metals leading the drop. Inventories of manufactured non-durable goods rose for the first time in eight months.