Durable goods orders solid in May
Total durable goods orders increased 0.7% month-over-month (consensus +0.1%) following an unrevised 0.4% increase in April. Excluding transportation, durable goods orders also increased 0.7% (consensus +0.4%) following a downwardly revised 0.2% increase (from 0.3%) in April.
The key takeaway from the report is that business spending held up quite well in May, evidenced by the 0.5% increase in nondefense capital goods orders excluding aircraft.
New orders for primary metals increased 3.1% after increasing 0.9% in April.
New orders for fabricated metal products were unchanged following a 0.4% decline in April.
New orders for machinery increased 1.1% following a 1.0% increase in April.
New orders for transportation equipment rose 0.8% after increasing 0.7% in April, paced by a 0.5% increase in new orders for motor vehicles and parts.
Shipments of nondefense capital goods, excluding aircraft, jumped 0.8% after increasing 0.8% in April. This component factors into GDP computations, so it is a positive input for Q2 GDP.