US factory orders rise

New orders for US-made goods rose for a second month in April, boosted largely by defense spending, but the overall manufacturing industry continued to struggle under the weight of higher interest rates.

Factory orders increased 0.4 per cent after a 0.6 per cent gain in March, the Commerce Department said on Monday. Economists polled by Reuters had forecast orders rising 0.8 per cent. Orders increased 1.4 per cent on a year-on-year basis in April.

The sector, which accounts for 11.3 per cent of the economy, is being dragged down by the Federal Reserve's fastest interest rate hiking campaign since the 1980s.