The 0.7 percent overall increase was in line with economists' expectations and pushed total orders to $239.9 billion. So far this year, orders are up 3.5 percent over the same period last year.
Demand for transportation products rose 0.6 percent, reflecting a big 8.2 percent gain in orders for commercial aircraft which offset a 2.1 percent drop in demand for motor vehicles. The drop in auto demand was expected to be temporary given strong sales of new cars this year.
Orders for machinery rose 2.4 percent while demand for primary metals such as steel increased 0.9 percent.
Orders for computers and related products dropped 13.9 percent but that followed a big 11.5 percent increase in the previous month.
The overall economy went into reverse in the January-March quarter, with output shrinking at an annual rate of 2.9 percent. That reflected in part a severe winter that disrupted U.S. economic activity, from factory production to shopping.
Economists expect that growth rebounded to a rate of around 2.9 percent in the April-June quarter and they are looking for momentum to build even more in the second half of this year.
The optimism is based on a belief that the five-year-old economic recovery is finally gaining traction, with businesses confident enough to step up hiring. That uptick in hiring is expected to power stronger consumer spending and more factory production.
The government reported that factory output increased for a fifth straight month in June as manufacturers cranked out more aircraft, chemicals and furniture. For the April-June quarter, manufacturing output accelerated to the fastest pace in more than two years and economists are looking for further gains in the months ahead, reflecting strong demand for autos and increased spending by businesses on new equipment.
A surprisingly resilient jobs report for June showed that factories added 16,000 positions, the most in four months, and the average work week for manufacturing employees remained at a post-recession high.
The Institute for Supply Management reported that its closely watched manufacturing index expanded in June for a 13th straight month with broad-based growth across nearly all of the 18 sectors that the index covers.