New orders for US manufactured goods declined 0.7 percent from a month earlier in May 2019, following an upwardly revised 1.2 percent fall in the previous month and compared with market expectations of a 0.5 percent decrease. It was the second consecutive monthly decline in factory orders, mostly due to lower demand of transportation equipment (-4.6 percent from -7.6 percent in April) namely civilian aircraft and parts (-28.2 percent). On the other hand, demand rose for computers and electronic products (0.7 percent from -0.5 percent) and machinery (0.8 percent from a flat reading). Orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, were up 0.5 percent in May, after increasing 0.4 percent in the prior month. Meantime, shipments of manufactured goods rose 0.1 percent, rebounding from an upwardly revised 0.6 percent fall in April. Factory Orders in the United States averaged 0.27 percent from 1991 until 2019, reaching an all time high of 10.40 percent in July of 2014 and a record low of -9.70 percent in August of 2014.
Factory Orders in the United States is expected to be 1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Factory Orders in the United States to stand at 0.50 in 12 months time. In the long-term, the United States Factory Orders is projected to trend around 0.30 percent in 2020, according to our econometric models.