Official figures show that new orders received by US factories bounced back in May, boosted by demand for transport equipment and a range of other products.
The Commerce Department said orders for manufactured goods rose 0.8% after revised 0.9% fall in April. Economists had forecast factory orders rebounding 1% in May.
Much of the May increase was driven by orders for aircraft, a volatile category, which jumped 36.5%. Car and car parts orders rose 2%.
Excluding transport, factory orders increased 0.2% in May, the same as April and down from a 2.9% gain in March.
The report also shows US companies, flush with cash, are investing in computers and other equipment. A measure of business investment rose 1.6%, after falling 0.4% the previous month.
