Reported 12 months ago
New orders for US-manufactured goods unexpectedly dropped by 0.5% in May, following a 0.4% increase in April, according to the Commerce Department's Census Bureau. Economists had predicted a 0.2% gain. The decline is attributed to weakened business spending on equipment amidst higher interest rates and softening demand for goods, with machinery orders falling by 0.5% and a decrease in orders for electrical equipment, appliances, components, and primary metals. This decline in factory orders reflects a broader trend of manufacturers displaying reluctance to invest in capital and inventory due to current monetary policy and economic conditions.
Source: YAHOO