Durable goods orders rise unexpectedly in May
WASHINGTON — Orders to U.S. factories for big-ticket manufactured goods rose sharply for a second straight month in May, and a key indicator of business investment surged by the largest amount in nearly five years.
The Commerce Department said today demand for durable goods rose 1.8 percent last month, far better than the 0.6 percent decline economists expected. It also matched the rise in April, with both months posting the best performance since December 2007, when the recession began.
Orders for non-defense capital goods, a key proxy for business investment plans, jumped 4.8 percent, the biggest increase since September 2004. That could signal businesses have stopped trimming their investment spending.
The back-to-back monthly gains in orders for durable goods, or items expected to last at least three years, were further evidence that a dismal stretch for U.S. manufacturers could be nearing an end. Still, analysts say any sustained rebound is still months away.
