The Economy : Orders for Manufactured Goods Grow

Indicator: May factory orders for durable and non-durable goods. What it did: Grew 2.9% in May, the second-consecutive advance and the largest in more than a year. What it means: Analysts said the report further confirmed their belief that the manufacturing economy was emerging from its recession. Because, factory orders are a key barometer of manufacturing industry plans, the increase could mean more production and employment in the months ahead. Highlights: Orders for durable goods-items ranging from appliances to aircraft expected to last more that three years-posted their second-straight advance. They were up a revised 3.4%.New orders for non-durable goods also rose, up 2.5%. All majors industries except rubber and plastics had increases. Also posting gains were orders for industrial machinery and equipment and primary metals. Only orders for electronic and other electrical equipment fell. Defense orders shot up 21.1% after a 16.4% spurt in April.

Factory Orders Total new orders in billions of dollars, seasonally adjusted May, ‘91: 238.0 April, ‘91: 231.2 May, ‘90: 245.3 Source: Commerce Department