Factory orders rose more than expected in May-WEB ONLY

Orders to U.S. factories jumped in May by the largest amount in nearly a year, another sign that the nosedive in manufacturing might be nearing an end.
The Commerce Department said today 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 last June. 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.
The troubled auto industry still suffered a decline. Demand for motor vehicles and parts fell 4.6 percent, but total transportation posted a 3.8-percent increase.
Excluding transportation, orders would have risen 0.8 percent, the best showing since last June.
The 1.8-percent rise in durable goods orders followed a 1.4-percent advance in April. It was the best showing since a 4.1-percent surge in December 2007, the month that the recession began.
Analysts saw the back-to-back gains in orders as further evidence that a dismal stretch for manufacturers may be ending. Orders had fallen every month from August through January. Even with the recent increases, orders so far this year.