New orders for U.S.-made goods descended more than expected in April, weighed down by declines in demand for transportation equipment and machinery. However, experts say, the underlying trend continued to suggest strong momentum in the manufacturing sector.
Figures released Monday by the U.S. Commerce Department Monday revealed factory goods orders decreased 0.8%. Data for March was revised up to show orders rising 1.7% instead of the previously reported 1.6% increase.
Economists had forecast factory orders falling 0.5% in April. Orders advanced 8.3% on a year-on-year basis in April.
The monthly decline in factory orders is likely to be temporary amid reports of strong manufacturing conditions in May. A survey by the Institute for Supply Management last week showed sentiment among manufacturers perking in May amid a surge in new orders.
Manufacturers, however, complained about rising prices for raw materials, especially for steel, as a result of the Trump administration in March slapping tariffs on steel and aluminum imports to protect domestic industries from what it says is unfair competition from foreign producers.
Prices are likely to rise even higher following Washington’s decision last week to extend the duties to steel and aluminum imports from Canada, Mexico and the European Union.
