US durable goods orders up 3.6 per cent in May

New orders for durable goods in the US rose by 3.6 per cent in May, flat on 3.6 per cent the month before. Expectations ranged between 3.0 and 3.8 per cent increases.

Orders were driven mainly by increased demand for commercial jets and military equipment, with aircraft orders up 51 per cent. Orders for core capital goods were up 1.1 per cent. The increases outweighed a 1.2 per cent fall in auto bookings.

In the first five months of the year, durable goods orders have increased by 2.1 per cent year-on-year - an encouraging sign.

Excluding transportation, orders were up 0.7 per cent in May, compared to April's reading of plus 1.5 per cent.