U.S. factory orders decrease less than forecast in February

The U.S. Commerce Department reported on Monday that the value of new factory orders fell 0.5 percent m-o-m in February, following a revised flat m-o-m reading in in January. 

Economists had forecast a 0.6 percent m-o-m decline. 

According to the report, orders for machinery fell 0.6 percent after advancing 2.1 percent in the prior month, while orders for electrical equipment, appliances and components increased 1.0 percent after increasing 1.1 percent in January. At the same time, computers and electronic products orders decreased 0.5 percent after dropping 1.9 percent in January.

Total factory orders excluding transportation, a volatile part of the overall reading, fell 4.5 percent m-o-m in February (compared to a 0.4 percent m-o-m drop in January), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, edged down 0.1 percent m-o-m (compared to a 0.9 percent m-o-m gain in January). The report also showed that shipments of core capital goods also slipped 0.1 percent m-o-m in February, following an increase of 1.0 percent m-o-m in January.

In y-o-y terms, factory orders increased 2.4 percent in February.