Rise in U.S. Durable Goods Orders in May

Data released by the government on Thursday reveals a notable increase in orders for home appliances, computers, automobiles, machinery, metals, and other durable goods manufactured in U.S. factories for the month of May.

The Commerce Department reported that orders for core capital goods—durable goods excluding aircraft and defense—increased by 1.6% in May. When comparing to the same period last year, orders surged by 8.3%.

While monthly figures are seasonally adjusted, the pricing data is not. Year-to-date statistics have not been adjusted for seasonality. The producer price index for private capital equipment showed a 0.3% rise from April to May and a 3.9% increase year-on-year. This indicates a considerable uptick in demand for capital goods when accounting for inflation.

May saw new orders for machinery climb by 1.9%, translating to a 10.3% increase year-to-date, making it a significant contributor to May’s overall rise, as it accounted for almost 60% of the growth in core capital goods.

There was also a 1.6% uptick in orders for computers and related equipment, an impressive 21.2% increase year-to-date, largely driven by substantial investments in AI-related data centers. Additionally, communications equipment orders grew by 0.8%, which reflects a year-on-year jump of 32.4%, also benefiting from AI investments.

Orders for primary metals, including steel and aluminum, rose by 3% in May and are up 11.4% for the year so far. Processed metal product orders grew by 1.5%, with year-to-date growth at 7.6%.

In the automotive sector, orders increased by 1.1%, bringing the year-to-date increase to 9.7%.

On the other hand, orders for non-defense aircraft—often subject to significant fluctuations—plummeted by 51.8% in May following a substantial 167.4% rise in April. When looking at the first five months of 2025, commercial aircraft orders have decreased by 22.4%.

For defense capital goods, orders dropped by 3.4% in May, although they have seen a hefty increase of 44.3% since the start of the year.

The declines in defense capital goods and civil aircraft orders contributed to an overall 4.5% decrease in durable goods orders in May compared to the previous month. However, there is a positive note, as overall durable goods orders have risen by 6.2% year-to-date.