U.S. Factory Orders Rise 4.1% in May

U.S. factory orders in May showed the largest gain in almost 7 1/2 years, suggesting that signs of a slowdown in consumer demand are having only a limited effect on manufacturers, government statistics showed. Orders rose 4.1% as demand increased for electronics, autos and chemicals, the Commerce Department said. May’s increase was the largest since a 4.9% rise in December 1992. Excluding transportation equipment, orders increased 4.3% in May, the largest gain since a similar rise in January 1980. The jump in orders--along with a separate Labor Department report showing claims for jobless benefits fell 12,000 last week to 296,000, the lowest level in five weeks--indicates the record nine-year economic expansion may not be cooling as much as Federal Reserve policymakers would like to see. In addition to the decline in first-time jobless benefit claims, a survey by employment firm Challenger, Gray & Christmas showed that the number of planned job cuts by U.S. businesses fell in June to the lowest total in 36 months. Planned cuts fell 73% last month to 17,241 from 63,397 during June 1999, the survey showed.