US Durable Goods Orders Soar On Boeing Boost, But Underlying Growth Remains Tepid

A sharp rebound in U.S. durable goods orders in May has delivered a temporary shot of optimism for the manufacturing sector, though analysts caution the surge may be largely driven by one-off aircraft deals.

New data released Wednesday shows that orders for durable goods—items intended to last at least three years—jumped 16.4% last month, following a 6.6% decline in April. The spike was primarily attributed to a massive surge in commercial aircraft orders, driven by Boeing's recent contract haul. As reported by Reuters, Boeing booked over 300 aircraft sales in May alone, including a high-profile order from Qatar Airways timed with a U.S. diplomatic mission to the Gulf.

While the headline figures appear robust, underlying indicators suggest more muted momentum. Excluding transportation, core capital goods—seen as a proxy for business investment—rose just 1.7%. This suggests that outside of aerospace, companies are still cautious about spending amid lingering concerns over tariffs and global demand uncertainty.

A breakdown by CNBC noted that gains in machinery and computers helped lift the overall picture slightly, but orders for vehicles and fabricated metals remained flat, pointing to uneven demand across sectors.

Economists say the Federal Reserve is likely to view the data as supportive of a "wait and see" approach. Despite soft Q1 GDP results, Fed officials have kept interest rates steady and signaled they are closely watching core business spending before shifting policy direction.