Factory Orders Up 0.3%

Washington, DC, June 4, 2007--Factory orders rose 0.3% in April following a 4.1 percent gain in March, according to the Commerce Department. Excluding transportation equipment, orders rose 0.7 percent after a 2.4 percent gain in March.

Inventories were up 0.5 percent for the biggest gain since September, and have increased in 13 of the last 14 months.

Economists were expecting an increase of 0.7 percent in orders during the month.

Orders for durable goods, which make up about 55 percent of factory demand, rose 0.8 percent after a 5.1 percent increase in March.

Orders for capital goods excluding aircraft and military equipment, a measure of future business investment, increased 2.1 percent after a 4.6 percent gain. The Commerce Department had previously estimated a 1.2 percent gain. Shipments of these goods, part of the government's calculation of gross domestic product, rose 1.0 percent after rising 1.6 percent.

Civilian aircraft orders fell 10.7 percent after gaining 53.6 percent in March.

Bookings for machinery fell 1.5 percent after rising 5.4 percent, today's report said. Primary metals orders rose 3.9 percent after rising 5.8 percent.

Orders for computers and electronic products rose 1.8 percent after falling 1.3 percent. Bookings for automobiles fell 2.7 percent after gaining 2.4 percent.

Non-durable goods orders fell 0.2 percent in April after rising 2.9 percent in March.