New orders for long-lasting U.S. manufactured goods rose by a much stronger-than-expected 1.8 percent in May, Commerce Department data on Wednesday showed, providing further evidence that the battered economy was finding its feet.
Analysts polled by Reuters had forecast durable goods orders would decline 0.6 percent last month. May’s increase, the third gain in 4 months, followed a revised 1.8 percent gain in April, previously reported as a 1.7 percent rise.
Perhaps most importantly, orders for non-defense capital goods were up. We think of this as a proxy for business investment spending. Typically, investment doesn’t pick up until the recovery is well on its way. Charts and details to come.