U.S. factory orders in May rise at slowest pace in 3 months

According to data released by the US Department of Commerce on July 2, orders for US factories in May 2008 increased by 0.6% over the previous month, significantly lower than the 1.3% increase in April, the lowest growth rate in three months. Data show that due to the weak US economy and soaring oil prices in the international market, US auto orders fell by 1.6% in May, but civil aircraft orders increased significantly by 10.3%. Orders for transportation products, which account for more than a quarter of total durable goods orders, rose 2.5% in the month. Excluding volatile orders for shipping products, U.S. factory orders rose 0.4% in May. Affected by the sluggish growth in construction, industry and other fields, orders for machinery products fell by 5% in the month. But orders for non-durable goods such as oil and food rose 1.2%, spurred by soaring oil prices. Separately, factory shipments, which reflect current market demand, rose 1.1% in May, backlogs rose 0.9%, and inventories rose 0.4%. U.S. factory orders in May were in line with expectations. Some economists said that while U.S. factory orders have risen for several months, growth has slowed markedly.