U.S. Durable Goods Orders Rebound In May, Led By Orders For Transportation Equipment
After reporting a sharp drop in new orders for U.S. manufactured durable goods in the previous month, the Commerce Department released a report on Thursday showing a substantial rebound in durable goods orders in the month of May.
The Commerce Department said durable goods orders spiked by 15.8 percent in May after plunging by a revised 18.1 percent in April.
Economists had expected durable goods orders to surge up by 10.9 percent compared to the 17.7 percent nosedive that had been reported for the previous month.
The bigger than expected rebound in durable goods orders came as orders for transportation equipment skyrocketed by 80.7 percent in May after plummeting by 48.6 percent in April.
Paul Ashworth, Chief U.S. Economist at Capital Economics, noted the jump in orders for transportation equipment came as aircraft manufacturers received fewer cancellations and net orders returned to positive territory.
Orders for motor vehicles and parts also soared by 27.5 percent in May after plunging by 53.7 percent in the previous month.
Excluding the rebound in orders for transportation equipment, durable goods orders still surged up by 4.0 percent in May after tumbling by 8.2 percent in April. Economists had expected a 2.5 percent increase.
Orders for primary metals, fabricated metal products and electrical equipment, appliances and components all showed significant rebounds.
The report also said orders for non-defense capital goods excluding aircraft, a reading on business spending, jumped by 2.3 percent in May after slumping by 6.5 percent in April.
Next Thursday, the Commerce Department is due to release a separate report on factory orders in the month of May, which includes orders for both durable and non-durable goods.
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