Durable goods orders May prelim report released by census.gov.

Durable goods orders May prelim report released by census.gov.

The preliminary report on durable goods orders for May, released by the U.S. Census Bureau, has provided valuable insights into the manufacturing sector's activity. The report, released on June 26, 2025, indicated a significant rebound in durable goods orders after a decline in April, signaling a potential shift in manufacturing trends.

Durable goods orders, which measure the value of orders for goods expected to last more than three years, such as major appliances and machinery, are a critical indicator of manufacturing activity. The preliminary report for May showed a notable increase, suggesting that manufacturers are adjusting to the rising costs of tariffs and other trade-related uncertainties.

According to the report, durable goods orders for May surged, rebounding from the decline seen in April. This uptick is particularly significant as it indicates that manufacturers are ramping up production to meet demand, despite the challenges posed by higher input costs. The report also highlighted a shift in consumer spending patterns, with an increase in orders for durable goods, which can be attributed to pent-up demand and consumer confidence.

The preliminary report also sheds light on the impact of geopolitical tensions, particularly the recent escalation in the Middle East. The report noted that while the initial shock of the conflict led to a temporary slowdown in orders, the subsequent rebound suggests that manufacturers are resilient and adaptable to such external factors.

The report underscores the importance of monitoring durable goods orders as an indicator of broader economic health. As the manufacturing sector is a significant contributor to GDP, the trends in durable goods orders provide valuable insights into the overall economic trajectory. The preliminary report for May suggests a potential recovery in manufacturing activity, which could have positive implications for the broader economy.

In conclusion, the preliminary report on durable goods orders for May offers a positive outlook for the manufacturing sector. The rebound in orders indicates that manufacturers are adjusting to the challenges posed by tariffs and geopolitical tensions, and that consumer demand remains robust. As we move into the third quarter, investors and financial professionals should closely monitor this data for further insights into the economic health and direction.

References:
[1] https://www.linkedin.com/news/story/the-numbers-to-watch-this-week-7438922/