New orders for industrial and consumer goods designed to last longer than three years jumped in May following a strong performance in April. It was the best two month gain since 2009.
Bookings for durable goods rose 3.6%, according to the Commerce Department, the same as the revised figure for April. Economists had forecast a 3.0% increase. The initial April reading was 3.3%.
Excluding orders in the transportation sector, primarily civilian aircraft at Boeing Company, placements climbed 0.7%, better than the flat expectation. The April total was revised up to 1.7% from 1.3%.
Consumer confidence rose to its highest level in more than five years in June according to the Conference Board, a business research group.
The index of consumer sentiment increased to 81.4 from 74.3 in May. It was the strongest reading since January 2008, topping the median analyst estimate of 75.1.
Confidence in the current situation rose to 69.2 in June from 64.8 and expectations for the economic environment in six months jumped to 89.5 from 80.6. It was the best view of the consumer future since February 2011.
Strong demand for cars and trucks, which sold at a 15.24 million annual rate in May and have averaged 15.18 million units a month this year,the best level since early 2008, helped sustain durable goods orders. Boeing Company of Chicago gained 232 aircraft orders in May, up from 51 in April.
Orders for non-defense capital goods, items bought by businesses and a close replica of the business investment component of GDP as calculated by the Bureau of Economic Analysis at the Commerce Department, rose 1.1% in May following a 1.2% gain in April.
Chief Market Strategist