US Factory Orders Surprised To The Upside In May Despite Collapsing ISM

After decelerating in April – and despite plunging Manufacturing PMIs – analysts expected US Factory Orders to re-accelerate from +0.3% MoM to +0.5% MoM in May… and they were right as orders soared 1.6% MoM (the eight straight month of rising orders)…

Source: Bloomberg

Year-over-year, orders are up 14.0% after April’s data was also revised higher (from +0.3% MoM to +0.7% MoM).

Core Orders (Ex Transports), rose rose 1.7% MoM in May (accelerating from the upwardly revised 0.6% MoM in April).

Let’s get some context for this move in US Factory Orders. ISM Manufacturing New Orders is at its lowest since the COVID lockdowns… and US Factory Orders are reportedly at record highs (ex the July 2014 glitch)…

Source: Bloomberg

Which are you going to believe?