US Durable Goods Orders Spike 16 Percent in May, Led by Transportation Growth

New orders of manufactured durable goods in the United States jumped 16.4 percent in May, nearly doubling the current forecast and greatly surpassing April’s revised orders, the U.S. Census Bureau reported on June 26.

The monthly advance report from U.S. manufacturers, which could be revised, shows that new orders for durable goods in May increased by $48.3 billion, or 16.4 percent, to $343.6 billion. The consensus forecast had been set at 8.6 percent.

Discounting transportation, new orders increased by 0.5 percent. New orders (excluding defense) rose by 15.5 percent. Transportation equipment, which has also grown in five of the past six months, led U.S. manufacturing growth, reaching $145.4 billion, or 48.3 percent of the total, with $47.4 billion.

According to analysts surveyed by The Epoch Times, several recent commercial aircraft deals have boosted the country’s transportation sector and suppliers. Over the past few months, new deals have been announced by Boeing, Airbus, and other global aircraft manufacturers, including recent announcements at last week’s Paris Air Show and the ongoing Farnborough International Airshow in the United Kingdom.

For example, the Trump administration helped facilitate a major commercial deal between Korean Air, Boeing, and GE Aerospace in March worth around $32 billion. The deal includes Korean Air’s purchase of up to 50 widebody aircraft made by Boeing, powered by GE Aerospace engines.

On June 23, Aviation Capital Group LLC announced at the Farnborough Airshow that it is growing its Boeing 737 MAX fleet with an order for 12 additional 737-8 MAX aircraft. As the travel market recovers, a subsidiary of Japan-based Tokyo Century Corp., which leases commercial planes to airlines worldwide, said it is increasing its 737-8 offerings to meet airline demand for modern, fuel-efficient, and sustainable operations.

In a recent research note provided to The Epoch Times, Bank of America transportation analyst Andrew Didora stated that the United States and other global airlines are beginning to receive aircraft shipments from earlier orders, although some wide-body plane deliveries might be delayed.

“The airlines have noted Boeing is starting to deliver narrowbody planes on time with recent deliveries ahead of revised plans. Widebody deliveries remain more uncertain given some supply chain issues,” Didora said via email.

Unlike non-durable goods that are consumed or used up quickly, durable goods are items with a longer shelf life, typically over three years, such as appliances, vehicles, and machinery. The monthly durable goods report, compiled by the Department of Commerce, is vital because it provides valuable insights into manufacturing activity and the overall economy.

By tracking new orders, shipments, and inventories, the monthly advance report helps businesses, policymakers, and economists make informed decisions, forecast economic trends, and assess the overall strength of the manufacturing sector. Going back to late 2024, durable goods orders have increased in five of the past six months.

Through May, shipments of manufactured durable goods also increased for the sixth consecutive month, rising by $0.6 billion, or 0.2 percent, to $301 billion. Transportation equipment, which has gone up in five of the past six months, led the growth, up by $0.3 billion, or 0.3 percent, to $98 billion.

Unfilled manufacturing orders in May increased by 3.4 percent, to $1.455 trillion, marking growth in 10 of the past 11 months. Transportation equipment also contributed to that growth, rising by 5.6 percent, to $897.8 billion.

Inventories of manufactured durable goods in May were flat primarily, gaining 0.2 percent, to reach $587.8 billion, yet marking the eighth consecutive month of growth. Non-defense new orders for capital goods in May increased by 49.4 percent, to reach $130.4 billion. Defense new orders for capital goods in May spiked by 38.7 percent, reaching $19 billion.

April’s seasonally adjusted revised data for all manufacturing industries show new orders at $593.6 billion, shipments at $598.7 billion, unfilled orders at $1.408 trillion, and total inventories at $943.3 billion.