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2013-10-30 14:54:43

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7 percent in May Knoxville News Sentinel

FILEIn this Wednesday, May, 9, 2012, file photo, businessman Earl Kluft, who manufactures luxury mattresses, performs the final step in fully securing all materials to provide mattresses maximum support and longevity, at his factory in Rancho Cucamonga, Calif. The Commerce Department reported Tuesday, July 3, 2012, that factory orders increased 0.7 percent in May. factories received more orders in May from April after two consecutive months of declines, as businesses demanded more goods that signal investment plans. (AP Photo/Damian Dovarganes, File)

FILE In this Tuesday, May 1, 2012, file photo, worker Renaldo Escobar, of Boston, center, presses a shoe onto a last during the assembly process at the New Balance Athletic Shoe, Inc. factory in Boston. The Commerce Department reported Tuesday, July 3, 2012, that factory orders increased 0.7 percent in May. factories received more orders in May from April after two consecutive months of declines, as businesses demanded more goods that signal investment plans. (AP Photo/Steven Senne, File)

FILE PHOTO In this Tuesday, May 1, 2012, file photo,, worker Khan Simom, of Boston, glues cushions to unfinished shoes during the assembly process at the New Balance Athletic Shoe, Inc. factory in Boston. The Commerce Department reported Tuesday, July 3, 2012, that factory orders increased 0.7 percent in May. factories received more orders in May from April after two consecutive months of declines, as businesses demanded more goods that signal investment plans. factories in May from April, demanding more computers, machinery and other equipment that signal investment plans.

The increase is a welcome sign after two months of declining factory orders.

Still, factory orders are down from the start of the year. economy.

"The demand for manufactured goods is recovering moderately and irregularly, but that recovery has been relatively weak relative to the magnitude of the previous declines," said Steven Wood, chief economist at Insight Economics

Factory orders increased 0.7 percent in May from April, the Commerce Department said Tuesday.

Core capital goods, which include machinery and computers, rose 2.1 percent. That's better than the 1.6 percent estimated in a preliminary report a week ago and shows companies are still making investment plans.

Overall factory orders increased to $469 billion. That's 43.5 percent higher than the recession low reached in March 2009. But orders have fallen 2.5 percent over the past five months from their postrecession high hit in December.

Manufacturing has lost some vigor this year. job growth has slowed and consumers and businesses are less confident in the economy. exports. factories for equipment, machinery and vehicles.


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