BUSINESS MEMO: FACTORY ORDERS UP

New orders to U.S. factories in May took their biggest jump in more than seven years. But a more up-to-date report showed many of the nation's largest retailers had sluggish sales in June, adding to signs the economy's pace is slowing.

A big burst in demand for electronics helped push factory orders up by a larger-than-expected 4.1 percent in May to a seasonally adjusted $385.8 billion, the Commerce Department said Thursday. It marked the biggest increase since December 1992 and follows a 3.8 percent drop in April.

Some economists believed the factory orders report suggested that the economy may not be slowing as much as some had expected. But others cautioned not to read too much into the May increase because the factory orders data can be volatile from month to month.