New orders for durable goods increased 0.7 percent to $267.2 billion in May, paced by a gain in orders for transportation equipment, the Commerce Department said today.
That was the seventh increase in the past eight months and followed a revised gain of 0.4 percent for April.
Excluding transportation, orders rose 0.7 percent. Excluding defense, orders increased 0.6 percent.
The overall transportation equipment category posted a rise of 0.8 percent to $87.6 billion.
Within transportation, motor vehicles and parts rose 0.5 percent to $58.2 billion. Orders for defense aircraft and parts gained 8.1 percent to $5.3 billion.
Commercial aircraft and parts didn’t fare as well. Orders for that segment slipped 1.1 percent to $14.2 billion.
The auto industry continues to have its ups and downs because of a lingering shortage of semiconductors. That has resulted in tight production and temporary plant shutdowns. Last week, consulting firm AlixPartners forecast the automotive computer chip shortage would last into 2024.
The commercial aircraft industry is recovering from the COVID-19 pandemic. At the onset of COVID in 2020, demand for aircraft plunged along with demand for air travel. That demand has rebounded. But Boeing Co. continues to cope with production quality issues.
Among other categories, orders for primary metals gained 3.1 percent to $21.6 billion. Orders for machinery rose 1.1 percent to $38.2 billion. Orders for fabricated metal products were almost unchanged at $36.9 billion.
The report is based on a survey of about 3,100 companies.
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