WASHINGTON (AP) -- Orders to U.S. factories turned in the slowest performance in three months in May as a surge in demand for commercial aircraft was not enough to offset weakness in autos, heavy machinery and steel.Factory orders rose by 0.6 percent in May, less than half the gains turned in during April and March, the Commerce Department reported Wednesday. It was the poorest showing since factory orders had fallen by 0.4 percent in February.
Analysts said the figures for the past three months have been inflated by big increases in the cost of refined petroleum and related products such as chemicals, which have been soaring because of the rising cost of global oil prices.
Oil hit a new record on Wednesday, climbing to above $144 per barrel. Global Insight, a major economic forecasting firm, said it was boosting its forecast for how high oil will go this year, predicting that West Texas intermediate crude will hit $160 a barrel in December, up from its previous forecast that oil would close out this year at $124 per barrel.
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