The U.S. Commerce Department reported on Friday that the value of new factory orders rose 0.6 percent m-o-m in June, following a revised 1.3 percent decline in May (originally a 0.7 percent m-o-m drop). 

Economists had forecast a 0.8 percent m-o-m gain. 

According to the report, orders for transportation equipment surged 3.7 percent m-o-m in June after plunging 7.5 percent m-o-m in May, while machinery orders increased 2.1 percent m-o-m, following a 0.1 percent m-o-m advance in the previous month. At the same time, orders for computers and electronic products edged down 0.2 percent m-o-m after a 0.5 percent m-o-m gain in May. 

Meanwhile, total factory orders excluding transportation, a volatile part of the overall reading, edged up 0.1 percent m-o-m in June (compared to a flat m-o-m performance in May), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, increased 1.5 percent m-o-m (compared to a 1.9 percent m-o-m climb in May). The report also showed that shipments of core capital goods rose 0.3 percent m-o-m in June, following an advance of 0.6 percent m-o-m in May.

In y-o-y terms, factory orders increased 0.2 percent in June.