Durable Goods Orders Rise More Than Expected

Washington, DC, June 24, 2011 -- Durable goods order rose a better-than-expected 1.9% in May, the Commerce Department estimated Friday.

Orders fell a revised 2.7% in April, the biggest decline since October but lower than the prior estimate of a 3.6% drop.

Economists had been forecasting a 1.6% increase in May’s orders.

Bottlenecks from supply disruptions arising from the disastrous March earthquake and tsunami in Japan have begun to ease, boosting orders.

Shipments of durable goods rose 0.3% in May. Inventories of durable goods also rose, up 1.2%

Orders for civilian aircraft surged 36.5% last month, more than offsetting a 29% drop in April.

Excluding a 5.8% increase in transportation equipment, durable orders rose 0.6% in May after a 0.4% drop in April.