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WASHINGTON – Manufactured goods orders to US factories rose 1.8% in May, matching growth in April, the Commerce Department says.

This is a strong improvement over the economists’ expectation of a 0.6% decline.

Non-defense capital goods orders were up 4.8%, the largest increase in nearly five years.

Excluding transportation, durable goods orders were up 1.1% in May. Transportation products demand rose 3.6%, with commercial aircraft orders surging 68.1%.

However, demand for motor vehicles and parts dropped 8.1%. Machinery orders increased 7.7%, and demand for computers and related products rose 9.4%, say published reports.

Nevertheless, new home sales fell 0.6% during the month, the Commerce Department says. Sales were down nearly 33% year-over-year.

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