New orders for manufactured durable goods in May, down following two consecutive monthly increases, decreased $15.6 billion or 4.5% to $332.1 billion, the U.S. Census Bureau announced on June 25.

This followed an 8.5% April increase.

Excluding transportation, new orders increased 1.3%.

Excluding defense, new orders decreased 4.6%.

Transportation equipment, also down following two consecutive monthly increases, drove the decrease, $18.5 billion or 14% to $113.5 billion.

Matthew Martin, senior economist at Oxford Economics, provided this analysis. 

A large decline in volatile transportation orders dragged headline durable goods lower in May, but the more important signal was a strong rebound in nondefense capital goods orders ex-aircraft – reinforcing our confidence in another solid quarter of business equipment investment despite geopolitical and energy headwinds.

Our tracker suggests business equipment investment will rise by close to 14% annualized in Q2. Structural tailwinds underpinning investment – from the AI buildout to fiscal support – remain intact and should support continued growth throughout 2026.