Durable Goods Orders Still Healthy

- Durable Goods Orders for May fell .3% versus estimates of a .4% increase and a 4.7% decline in April.
- Durables Ex Transportation for May rose .7% versus estimates of a .6% increase and a 1.0% decline in April.

BOTTOM LINE: Orders for US-made durable goods excluding transportation equipment rose .7% in May, easing concern that the economy is cooling too quickly after two years of interest rate increases, Bloomberg said. Record corporate profits are continuing to fuel the purchasing of new equipment to improve efficiency. Orders for computers rose 1.9% and communications equipment orders gained 5.9% last month. Bookings for non-defense capital goods excluding aircraft, a proxy for future business investment, rose 1.0% last month versus a 1.9% decline the prior month. Inventories of durable goods rose .4% versus a 1.1% gain in April, paced by metals stockpiles which rose to an all-time record. I continue to believe US growth is just slowing to more average levels, not plunging, and this report just adds to evidence that supports that belief.