New orders for manufactured durable goods increased by nearly $2 billion or 0.7 percent to $267 billion in May, according to the U.S. Census Bureau, signaling strong consumer demand for products such as household appliances even as warnings of an economic downturn remain. The increase, the seventh in the last eight months, was a steeper jump than the 0.4 percent increase in April.
Shipments of manufactured durable goods increased for the 12th time in the last 13 months, this time by $3.6 billion or 1.3 percent to $268.4 billion. Unfilled orders grew as well, by $3.7 billion or less than a half-percent to $1.1 trillion. Inventories, which have consistently grown over the last two years, did so again in May, increasing by $2.7 billion or 0.6 percent to nearly $798 billion.
Driven by a large jump in new orders for transportation equipment, new orders for manufactured nondurable goods increased $6.3 billion or 2.3 percent to nearly $276 billion. New orders for non-defense capital goods increased by $400 million or a half-percent in May to $83.7 billion. Shipments grew $1.3 billion or 1.6 percent to nearly $80 billion.