Input Stories

Input Stories

Durable Goods Orders Increase Only Slightly

Orders of durable goods—items meant to last at least three years—inched up unexpectedly in May but were down from April (Markets Insider).

What’s going on: “[D]urable goods orders inched up by 0.1 percent in May after rising by a downwardly revised 0.2 percent in April,” according to Commerce Department data out today.

  • Economists polled by the Wall Street Journal had forecast a 1.0% drop for the month (MarketWatch).

The details: Core durable goods, which exclude transportation, rose 0.1% month on month, in keeping with expectations (Seeking Alpha ).

  • Transportation equipment drove the increase, rising 0.6% to $95.4 billion.
  • Excluding defense, new orders dipped 0.2%.
  • Shipments of manufactured durable goods decreased 0.3% to $284.7 billion.

A bright spot: Orders for new cars and trucks increased 0.7%, however.

What it means: “Manufacturers are unlikely to make a big rebound until the Federal Reserve lowers interest rates and makes its more financially attractive for businesses to invest. Economists predict companies will boost investment to offset a chronic shortage of labor and to take advantage of new advances in artificial intelligence and other technologies.”

View More