Durable Goods Orders Jump 5.5%

Washington, DC, June 24—-Orders for durable goods in May increased 5.5%, according to the Commerce Department. It was the biggest increase since March 2004.

Economists were looking for an increase in orders of 1.8%.

Total durable-goods orders were boosted by a 165% jump in civilian aircraft orders.

Orders for all transportation equipment rose 21.2% in May, marking the biggest gain since July 2002.But excluding transportation, durable-goods orders were down 0.2% in May, spelling the third decline in the past four months.

Durable orders in April were revised to a 1.4% increase from 1.9% previously estimated.

Shipments of durable goods decreased 0.2% in May after a 1.4% gain in April.

Orders for nondefense capital goods excluding aircraft fell 2.3% in May, reversing a 1.7% gain in April. This is the biggest decline since October. Shipments in this sector rose 0.2% after a 1.4% increase in April.

Excluding defense, orders rose 5.3%, the largest gain since March 2004.

Unfilled orders rose 1.9%, the largest increase since June 2000. Manufacturers’ inventories of durable goods rose 0.3%.

In May, orders for electronics excluding semiconductors fell 1.2% as orders for communications equipment slipped 0.5%, with orders for computers down 7.0%. Shipments of electronics rose 1.0% last month.

Orders for electrical equipment increased 0.3%, while shipments increased 1.0%.

Orders for machinery fell 1.9%, while shipments decreased 0.9%.

Orders for fabricated metals fell 0.3%, with shipments easing 0.3%.

Orders for primary metals were unchanged, while shipments fell 1.7%.