Durable goods orders beat expectations in May, rising 1.7% to a record $288.2 billion from $283.2 billion in April, according to U.S. Census Bureau data.
- Excluding transportation equipment, orders for new durable goods increased 0.6% last month, to $185.62 billion from $184.54 billion in April.
Year over year: New durable goods orders have increased solidly on a year-over-year basis—5.4%—since May 2022.
- They have dipped 0.3% over the past 12 months when excluding transportation equipment, however.
Core capital goods: Orders for core capital goods, a proxy for capital spending in the U.S. economy, increased 0.7% in May, to $73.96 billion from $73.46 billion. That’s an all-time high.
What’s up: The following categories posted strong sales in May:
- Non-defense aircraft and parts (up 32.5%)
- Motor vehicles and parts (up 2.2%)
- Electrical equipment and appliances (up 1.7%)
- Machinery (up 1.0%)
- Other durable goods (up 0.6%)
- Primary metals (up 0.5%)
The NAM’s take: “Durable goods orders were stronger than expected in May, with continuing resilience despite a challenging economic environment amid an uncertain outlook,” said Moutray.