WASHINGTON, June 4(Reuters) - New orders for U.S.-made goods
fell more than expected in April as a global semiconductor
shortage weighed on the production of motor vehicles and
electrical equipment, appliances and components.
The Commerce Department said on Friday that factory orders
dropped 0.6% in April after increasing 1.4% in March. Economists
polled by Reuters had forecast factory orders slipping 0.2%.
Orders surged 14.2% on a year-on-year basis.
Manufacturing, which accounts for 11.9% of the U.S. economy,
is being supported by a shift in demand towards goods from
services during the pandemic. But the strong demand is straining
supply chains. The Institute for Supply Management reported this
week that manufacturing activity picked up in May, but noted
that companies were struggling to fill orders because of
shortages of raw materials and labor.
Factory goods orders in April were weighed down by a 6.1%
decrease in orders for motor vehicles and parts. Orders for
electrical equipment, appliances and components fell 0.7%.
Unfilled orders at factories gained 0.2% after rising 0.5%
in March. The Commerce Department also reported that orders for
non-defense capital goods, excluding aircraft, which are seen as
a measure of business spending plans on equipment, surged 2.2%
in April instead of 2.3% as reported last month.
Shipments of core capital goods, which are used to calculate
business equipment spending in the gross domestic product
report, increased 0.9%, unrevised from last month's estimate.
Business investment on equipment has enjoyed double-digit
growth over the last three quarters, also driven by massive
fiscal stimulus to soften the blow to the economy from the
public health crisis.
(Reporting By Lucia Mutikani
Editing by Chizu Nomiyama)
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