The U.S. Commerce Department reported on Wednesday that the value of new factory orders decreased 0.7 percent m-o-m in May, following a revised 1.2 percent decline in April (originally a 0.8 percent m-o-m drop).

Economists had forecast a 0.5 percent m-o-m drop.

According to the report, orders for transportation equipment fell 4.6 percent m-o-m in May after plunging 7.6 percent m-o-m in April, while orders for computers and electronic products and machinery increased.

Meanwhile, total factory orders excluding transportation, a volatile part of the overall reading, edged up 0.1 percent m-o-m in May (compared to a 0.2 percent m-o-m advance in April), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, increased 0.5 percent m-o-m (compared to a 1.1 percent m-o-m decline in April). The report also showed that shipments of core capital goods climbed 0.6 percent m-o-m in May, following an advance of 0.4 percent m-o-m in April.

In y-o-y terms, factory orders increased 1.6 percent in May.