Rise in orders to factories indicates manufacturing rebound
Orders placed with U.S. factories increased in May, indicating that manufacturing may rebound from a slowdown in economic growth in the first half of 2011, Bloomberg reported.
Bookings for manufacturers’ goods rose 0.8 percent, less than forecast, after a revised 0.9 percent decline in April that was smaller than previously estimated, according to figures released today by the U.S. Department of Commerce.
Demand for durable goods, defined as those that are meant to last at least three years, increased 2.1 percent, and unfilled orders rose the most since September.
Manufacturing is showing signs of recovering from parts shortages linked to the earthquake in Japan. The improvement in orders supports the view of Federal Reserve officials, who last month said the most recent economic struggles likely reflect temporary restraints.
The rise in durable goods orders, which make up more than half of total factory demand, was larger than the 1.9 percent increase estimated by the government on June 24.