US factory orders show weak rise

The figures reflect weak demand for cars in the US

US factory orders recorded their smallest rise for three months in May, reflecting declining demand for cars, heavy machinery and steel.

Factory orders rose 0.6%, less than half the rises seen in April and March, according to the Commerce Department.

The fall would have been bigger without the support of transportation orders, which rose 2.5% on the back of rising orders for aircraft.

Excluding transportation orders, factory orders only rose by 0.4%.

Analysts said that the figures were also boosted by the price of oil.

"The data if anything is a little inflated by the increase in the nominal price of oil for the petroleum guys in the sample," said Carl Lantz from Credit Suisse in New York.

Others said that a positive reading of any kind was an encouraging sign.

"The fact that they're still showing expansion is definitely a positive," said Edward Bretschger from Calyon Securities.

"A positive data point like this may be what need to stave off the technical definition of a bear market."