U.S. factory orders rebounded 8.2 percent in May, in line with expectations, more than recovering the downwardly revised 3.9 percent decline in April.

Much of the rebound in May was due to a 48.3 percent increase in transportation led by a 230.8 surge in nondefense aircraft. Excluding transportation, factory orders edged up 0.2 percent, not enough to recover declines of 0.6 percent in April and 0.5 percent in March, likely reflecting the ongoing caution from businesses amid tariff uncertainty.

This uncertainty is felt in the labor market, as 8,000 manufacturing jobs were lost in April and 7,000 more in May.

Unfilled orders followed a similar pattern, as they increased 3.4 percent in May after being stable in April. Excluding transportation, unfilled orders were flat on the month after retreating 0.1 percent in April and 0.2 percent in March.

After two consecutive months of declines, manufacturers' shipments edged up 0.1 percent in May. Excluding transportation, shipments were also up 0.1 percent.

Inventories also edged up 0.1 percent on the month.

With durable goods already reported up 16.4 percent, another huge aircraft-driven rise expected at 8.1 percent on the month.

Factory orders represent the dollar level of new orders for both durable and nondurable goods. This report gives more complete information than the advance durable goods report which is released one or two weeks earlier in the month.

Investors want to keep their fingers on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more moderate growth which is less likely to cause inflationary pressures. By tracking economic data like factory orders, investors will know what the economic backdrop is for these markets and their portfolios. The orders data show how busy factories will be in coming months as manufacturers work to fill those orders. This report provides insight to the demand for not only hard goods such as refrigerators and cars, but nondurables such as cigarettes and apparel. In addition to new orders, analysts monitor unfilled orders, an indicator of the backlog in production. Shipments reveal current sales. Inventories give a handle on the strength of current and future production. All in all, this report tells investors what to expect from the manufacturing sector, a major component of the economy and therefore a major influence on their investments.