Factory orders decline 0.3 percent

Washington, DC, Jul. 2 (UPI) -- The U.S. Commerce Department said Friday orders for factory goods declined for the second straight month in May.

The government said demand for manufactured goods fell 0.3 percent in May after falling 1.1 percent in April.

Wall Street economists were expecting orders to decline 0.5 percent.

Analysts said the report suggested that growth in the manufacturing sector of the economy is moderating.

The report showed non-durable goods orders rose 1.5 percent after rising 0.8 percent in April.

A key barometer of business spending -- non-defense capital goods orders minus aircraft -- declined for the second month, falling 3.5 percent in May.

Consumer-goods orders rose 1.6 percent after slipping 0.6 percent in April. Consumer durable-goods orders rose 0.5 percent while consumer non-durables gained 2 percent.

Demand for transportation-related goods fell 2.9 percent after falling 5.2 percent during the previous month. Non-defense aircraft and parts orders jumped 6.9 percent while defense aircraft and parts orders climbed 12.6 percent.

Orders for cars and parts fell 2.5 percent. Defense capital-goods orders dropped by 11 percent after falling 12.8 percent in April.

Without defense orders, overall factory orders would have been unchanged for the month.

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