Green shoots as US durable goods orders rise
ORDERS for long-lasting U.S.manufactured goods rose more than expected in May and a gauge of planned business spending increased for a third straight month, the latest signs of a pick-up in economic activity.
Durable goods orders increased 3.6pc as demand for goods ranging from aircraft to machinery rose, the Commerce Department said on Tuesday. Orders for these goods, which range from toasters to aircraft, had increased by a revised 3.6pc in April.
Economists polled by Reuters had expected orders to rise 3pc after a previously reported 3.5pc increase the prior month.
Orders excluding transportation rose 0.7pc after advancing 1.7pc in April.
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 1.1pc.
Orders for the so-called core capital goods had increased 1.2pc in April and economists had expected a 0.3pc gain last month.
The increase in shipments of core capital goods pointed to moderate growth in business spending on capital equipment.
The report was the latest indication of an improvement in factory activity and broader economic conditions after the economy hit a soft patch early in the second quarter. It was
supportive of the Federal Reserve's view that risks to the economy have lessened.