Orders for heavy equipment and other durable goods increased for the fourth consecutive month in May.
Durable goods orders moved higher by 0.1%, bucking economist forecasts of a decline of a full percentage point. However, new orders for manufactured durable goods in May came in weaker than revised April results, Census Bureau data showed.
Orders for aircraft, motor vehicles and computer equipment led the growth in durable goods orders. However, economists said the moderate increase showed the economy could be slowing.
While durable goods orders were higher, BMO Capital Markets Senior Economist Sal Guatieri noted a surge in defense orders helped carry the results, as non-defense capital goods orders, excluding aircraft, fell by 0.6%, the most in four months. Weak primary metals and machinery orders also dragged down the results, he said.
“Soft orders for U.S. durable goods in May confirm the economy is getting bogged down under the weight of high interest rates and a strong dollar,” Guatieri said.
The Federal …