Particle.news
Download on the App Store
3 ARTICLES
·
last wk.

U.S. Durable-Goods Fall Sharply as Core Capital Orders Rebound on AI Spending

A big fall in volatile aircraft bookings cut the headline, while a rise in non-defense capital goods excluding aircraft signals stronger equipment investment and helps underpin Q2 growth.

A factory machine of Valencia Plastics creates wide mouth canisters, in Rye Canyon, in Valencia, California, U.S. December 23, 2025. REUTERS/Aude Guerrucci
Workers learn sealant application techniques at the Boeing Co. Foundational Training Center in Renton, Washington, US, on Wednesday, April 15, 2026. Boeing Co.'s newfound dominance of European rival Airbus SE extended into the first quarter, with the American manufacturer delivering 143 jets to add another chapter to what's been called a "comeback story." Photographer: M. Scott Brauer/Bloomberg via Getty Images

Overview

  • Overall new orders for manufactured durable goods fell 4.5 percent in May, driven by large swings in transport-related categories.
  • Non-defense capital goods orders excluding aircraft—a key real-time proxy for business investment—rose 1.6 percent in May, beating economists' forecasts and reversing April's weakness.
  • Civilian aircraft orders plunged 51.8 percent in May and Boeing reported receiving just 27 aircraft orders that month compared with 136 in April, which largely explains the headline drop.
  • Spending on computers and communications equipment rose strongly on heavy investment tied to artificial intelligence, while the producer price index for private capital equipment increased 0.3 percent month-to-month and 3.9 percent year-over-year, meaning part of the nominal gains reflect higher prices.
  • The May core rebound strengthens projections that equipment spending will help lift second-quarter GDP, but analysts warn the durable-goods series is volatile and subject to revisions with a fuller M3 report due later.