Factory Orders Rise More Than Estimates

- Factory Orders for May rose .7% versus estimates of a .1% increase and a 2.0% fall in April.

BOTTOM LINE: Factory orders in the US rose more than forecast in May, led by demand for business equipment that may keep the economy from slowing too much, Bloomberg reported. Excluding aircraft and other transportation equipment, orders gained 1.2%. Orders for capital goods excluding aircraft, a gauge of future business spending, rose .5% versus a 2.1% decline in April. The inventory-to-shipments ratio fell to 1.15 months, matching the record low set in December. I expect factory orders to continue to decelerate to average levels over the intermediate-term.