Washington, DC, July 6—Factory orders rose 2.9 percent in May for the largest gain in 14 months, according to the Commerce Department.
The sizable advance came after 0.7 percent increases registered in both March and April.
New bookings for machinery and computers fell in May. Orders for cars and primary metals, including steel, were flat. But demand for airplanes, household appliances and furniture all posted gains. Orders for food products and clothing also went up.
The overall performance in May was close to the 3 percent increase in orders to factories that economists were forecasting before the report was released.
Excluding orders for airplanes and other transportation equipment, though, factory orders dipped by 0.1 percent in May. This category saw orders decline by 0.4 percent in April.
In May, orders for all durable goods -- costly manufactured items expected to last at least three years -- rose by 5.5 percent, up from 1.5 percent in April.
Meanwhile, demand for nondurable goods, including food and clothing, edged up 0.1 percent in May. That followed a decline of 0.1 percent in April.
Shipments, a barometer of current demand, was flat in May, after rising by 0.7 percent in April.
