New orders for US factory goods unexpectedly rose 0.4pc in May, according to figures released today by the Commerce Department. Economists had predicted orders to remain flat in the month and the higher then expected figure suggests that optimism among sellers may not be as weak as feared. In April, overall factory orders fell a revised 3.0pc after the department initially reported a 2.9pc drop. Non-defence capital goods, a key component of the monthly report, fell 0.8pc, marking the second consecutive monthly decline.
Weak demand for transportation and defence orders brought down overall orders. Excluding transportation, new orders for factory goods rose 0.8pc in the month after falling 2.7pc in April. Excluding defence, new orders for factory goods rose 0.8pc in May following a 2.7pc decline. //www.fxcentre.com