Factory Orders Rise on Commercial Aircraft Demand

- Factory Orders for May rose 2.9% versus estimates of a 3.0% gain and a downwardly revised .7% increase in April.

BOTTOM LINE: US factory orders rose by the largest amount in a year, due mainly to a surge in commercial aircraft orders. However, demand for business equipment declined for a third month in four. As well, orders for non-defense capital goods excluding aircraft, a measure of future business investment, fell 2.5% in May after gaining 1.7% in April. I continue to believe manufacturing will remain mixed-to-weaker over the near-term. However, strong consumer spending boost acitivity over the intermediate-term.