MNI DATA IMPACT: US May Factory Orders Fall 0.7%>

--New Orders Ex. Transportation Up 0.1%, Nondurables Down 0.2%

--Factory Inventories Rise 0.2%; Business Inventories Tracking +0.4%

By Kevin Kastner, Brooke Migdon, and Alexandra Kelley

     WASHINGTON (MNI) - The value of new factory orders fell by 0.7% in 

May, as expected by analysts in an MNI survey and a slightly larger the 

0.6% decrease expected by the Bloomberg consensus, data released by the 

Commerce Department Wednesday morning showed. 

     Durable goods orders were unrevised from the previously reported 

1.3% decrease. Nondurable goods orders fell 0.2% on petroleum and coal 

products. 

     Here are the key findings from the release:

     - Factory orders excluding transportation were up 0.1% in the 

month. Durables orders excluding transportation were revised up to a 

0.4% gain from the previously reported 0.3% increase. 

     - Transportation orders were down 4.6% in May. The unlisted 

transportation components were down 3.5% in the month, based on an MNI 

calculation. Nondefense capital goods new orders fell by 2.2%, but were 

up 0.5% when excluding aircraft. 

     - Factory inventories posted a 0.2% increase in May, and when 

combined with the previously released advance readings for retail and 

wholesale inventories show business inventories are tracking for a 0.4% 

gain. Updated wholesale trade data scheduled for release on July 10 

could alter this projection. 

     - Overall factory shipments were up 0.1% in the month on a 0.3% 

gain reading for durable goods shipments, partially offset by a 0.2% 

decrease in nondurable shipments. Nondefense capital goods shipments 

rose by 0.5%, and were up 0.6% after excluding the civilian aircraft 

component. Given the mix of inventories and shipments, the 

inventory-to-shipments ratio rose to 1.38 from 1.37 in April. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$]