Durable Goods Orders Flat in May

Washington, DC, June 25, 2008--Durable goods orders were basically flat in May as strength in demand for aircraft and computers was offset by widespread weakness elsewhere.

The Commerce Department reported Wednesday that durable goods showed no change last month after declines of 1 percent in April and 0.2 percent in March.

Economists had expected a flat reading for May because of the weak economy.

The economy has continued to expand, although at a weak rate, despite sizable headwinds from a prolonged slump in housing and a severe credit crisis.

The reading on durable goods, items expected to last at least three years, showed that strength in May came from a 10.3 percent jump in demand for commercial aircraft and a 14.9 percent increase in orders for military planes and parts. This helped cushion a 3.3 percent decline in orders for motor vehicles.