US factory orders likely declined in May on slide in demand for durable goods

Factory orders in the US are expected to have declined in May on a drop in durable goods orders. According to a Societe Generale’s research report, factory orders might have dropped one percent in May, dragged down by a 2.2 percent decline in durable goods.

In the meantime, non-durable goods orders might have grown slightly by 0.2 percent. This is likely because of additional rise in coal and petroleum component. The petroleum and coal series, in March and April, had risen by 9.3 percent on rebound in oil prices.

As oil prices continued to increase in May, the petroleum and coal series are expected to have increased further by 3.5 percent. However, stripping that category, non-durables are likely to have declined by 0.3 percent. Still, after declining steadily last year, non-durable goods orders, excluding petroleum and coal, have started to recover, according to Societe Generale.