U.S. factory orders rose in May, as strong demand for nondurable goods offset a big drop in orders for aircraft.

Factory orders rose 0.7% in May, following a revised 2.0% decline in April, the Commerce Department said today. April orders were originally reported down 1.8%.

Orders were just slightly stronger than the 0.3% increase Wall Street economists had predicted ahead of the report.

Today’s report showed demand for durable goods, designed to last at least three years, fell 0.2%, following a 4.7% drop in April. The May figure was revised slightly upward from the Commerce Department’s originally estimated 0.3% decline.

However, nondurable goods orders climbed 1.6% in May, after increasing by 1.1% during April and 1.8% in March.

Nondefense capital goods orders excluding aircraft — a key barometer for business investment — rose 0.5%, after a 2.1% drop in April.

Consumer-goods orders were up 2.2% in May, after increasing 0.9% in April. Consumer durable goods orders rose 3.1% higher; consumer nondurables rose 1.9%.

The report showed factory shipments rose 2.2%. Unfilled orders climbed by 0.6%. Inventories were unchanged.