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US Durable Goods Orders Maintain Strong Growth for Third Consecutive Month

By:
James Hyerczyk
Updated: Jun 27, 2023, 14:28 GMT+00:00

US durable goods orders show strength in manufacturing as forecasts project stable growth for core orders, slight decline overall.

US Durable goods

Highlights

  • US durable goods orders show 3rd consecutive month of growth.
  • Transportation equipment plays a key role in driving overall growth.
  • Forecast indicates stability for core durable goods orders, slight decline for overall orders.

Overview

New orders for manufactured durable goods in the United States continued to show strength in May, marking the third consecutive month of growth. According to the U.S. Census Bureau, orders increased by $4.9 billion or 1.7 percent, reaching $288.2 billion. This positive trend follows a 1.2 percent increase in April.

When excluding transportation, new orders still saw a solid gain, rising by 0.6 percent. Similarly, excluding defense, new orders experienced a significant increase of 3.0 percent. Transportation equipment played a key role in driving the overall growth, as it witnessed a surge of $3.9 billion or 3.9 percent, reaching $102.6 billion.

These figures highlight the resilience of the U.S. manufacturing sector, as demand for durable goods continues to strengthen. The consecutive monthly growth in new orders, especially in transportation equipment, indicates a positive outlook for the industry. Traders and investors should monitor this trend closely as it may have implications for market performance in the short term.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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