US Durable Goods Fall in May

Orders for long-lasting U.S. manufactured goods unexpectedly fell in May, suggesting an anticipated rebound in growth this quarter could fall short of expectations, even as a measure of business capital spending plans rose.

The Commerce Department said on Wednesday durable goods orders declined 1.0 percent as demand for transportation, machinery, computers and electronic products, electrical equipment, appliances and components, and defense capital goods fell.

Orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, increased by a revised 0.8 percent in April, when they were boosted by defense equipment.

Economists polled by Reuters had forecast orders being flat last month after April’s previously reported 0.6 percent gain.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.7 percent after declining by a revised 1.1 percent in April.

Economists had expected orders for these so-called core capital goods to increase 0.5 percent after April’s previously reported 1.2 percent fall.

via Reuters

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