U.S. Factory Orders Drop in April

New U.S. factory orders declined by more than expected in April, falling by 0.6%, following a rise of 1.4% in March, amid the global shortage in semiconductors, data showed on Friday.

On an annual basis, factory orders surged by 14.2%, according to the U.S. Department of Commerce.

April’s reading of the orders for non-defense capital goods was revised downwards to show an increase of 2.2%, down from an initial estimate of 2.3%.

The semiconductor shortage led to a drop of 6.1% in the orders for motor vehicles and parts.

Similarly, the orders for electrical equipment and appliances plunged by 0.7%.

Meanwhile, unfilled factory orders rose by 0.2%.