May’s decline matches forecasts, reflecting a pullback after April’s 8.5% surge and signaling softer business investment.
US durable goods orders fell 4.5% in May to $332.1 billion, a $15.6 billion decline, as demand for long-lasting manufactured items weakened. The drop followed an 8.5% increase in April and aligned with market expectations.
The decline suggests a cooling in business investment after a strong rebound in the prior month. Analysts had anticipated a moderation following April’s sharp rise, which was driven by pent-up demand and supply chain improvements.
Markets showed limited reaction, as the data confirmed consensus estimates and did not alter broader economic outlooks.