By Xavier Fontdegloria
Growth in U.S. manufacturing orders gained momentum in May, reflecting that demand for goods from consumers and businesses remained strong even as economic growth slows.
New orders for manufactured goods rose 1.6% in May compared with the previous month, up from the revised 0.7% rise registered in April, the Commerce Department said Tuesday. Factory orders have increased for eight consecutive months.
Economists polled by The Wall Street Journal expected factory orders to rise by 0.6% on month.
New orders for manufactured durable goods--those meant to last at least three years--increased 0.8% in May after rising 0.4% in April.
The U.S. factory sector has been resilient due to strong demand for goods and sound business investment, but the current growth slowdown and consumers' shift in spending patterns toward services pose risks to the outlook. U.S. manufacturing output fell in May for the first time this year, and surveys to goods producers in June pointed to a decline in new orders, a sign of weakening demand ahead.
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(END) Dow Jones Newswires
July 05, 2022 10:30 ET (14:30 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.