US Durable Goods Orders Surge on Boeing Demand

U.S. durable goods orders jumped 16.4% in May, the biggest monthly increase in over a decade, primarily driven by a surge in commercial aircraft orders for Boeing. The sharp rise reversed a 6.6% drop in April, with transportation, especially nondefense aircraft, accounting for much of the gain. Excluding transportation, orders rose just 0.5%, and core capital goods, a key indicator of business investment, grew by 1.7%. Additional gains were reported in computers, electronic products, and machinery, while vehicles and fabricated metals remained mostly unchanged. Despite the rebound, economists and the Federal Reserve remain cautious due to persistent trade tariffs and global demand uncertainties. The Fed is expected to continue monitoring core business spending before considering any policy changes.