May Durable Goods Orders Up

The Commerce Department reported that new orders for manufactured durable goods increased $2.8 billion in May. Machinery, up three out of the last four months, had the largest increase, $1.6 billion or 7.7% to $22.5 billion.

“The May durable goods report adds a persuasive component to a growing body of evidence that U.S. economic activity is beginning to stabilize after a deep contraction,” said Cliff Waldman, Economist for the Manufacturers Alliance/MAPI. “Stripping out either transportation or defense, two volatile categories of demand, new orders were up over 1%. And manufacturing, with unfilled orders, had a sharp increase for the second consecutive month, indicating that demand is beginning to make a positive contribution to future production.”