The U.S. Commerce Department reported on Friday that the value of new factory orders jumped 1.7 percent m-o-m in May, following a revised 0.1 percent m-o-m drop in April (originally a 0.6 percent m-o-m decrease). 

Economists had forecast a 1.6 percent m-o-m climb.

According to the report, orders for transport equipment (+7.7 percent m-o-m) posted the biggest increase in May.

Meanwhile, total factory orders excluding transportation, a volatile part of the overall reading, went up 0.7 percent m-o-m in May (compared to an upwardly revised  1.0 percent m-o-m advance in April), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, edged up 0.1 percent m-o-m (compared to a 2.7 percent m-o-m advance in the previous month) instead of slipping 0.1 percent m-o-m as reported last month. The report also showed that shipments of core capital goods rose 1.1 percent m-o-m in May.

Overall, durable goods orders climbed 2.3 percent m-o-m in May, while orders for nondurable goods rose 1.0 percent m-o-m.