Jump in factory orders heralded as good sign for economy

Orders to U.S. factories jumped in May by the largest amount in nearly a year, another sign that the nosedive in manufacturing is nearing an end.

The Commerce Department said yesterday that total orders rose 1.2 percent in May, better than the 0.8 percent increase that economists had expected. The April performance was revised slightly lower to a gain of 0.5 percent, from 0.7 percent.

The May increase was the best showing since a 2.1 percent rise in June last year. The back-to-back increases in April and May were the first consecutive gains in nearly a year.

The May tally reflected a 1.8 percent rise in demand for durable goods, items expected to last at least three years, and a 0.7 percent increase in orders for nondurable products such as food, chemicals and paper.

A 68.7 percent surge in orders for commercial aircraft led the nondurable. But there was also strength in other areas, from iron and steel to industrial machinery and computers.

--The Associated Press