Orders for US long-lasting manufactured goods surged unexpectedly in May, government data showed today in a report pointing to recovery in the embattled sector amid the prolonged recession.
The Commerce Department said durable goods orders rose a seasonally adjusted 1.8% in May from April. The increase surprised most analysts, who had projected a decline of 0.9%.
The department said orders for durable goods, such as household appliances, computers and aircraft, rose in April by a revised 1.8%, lowering its initial estimate of 1.9%.
The last time durable goods orders had surged so strongly was in December 2007, the month when the world's largest economy officially entered recession.
US new home figures disappoint
Separate figures showed that sales of new homes in the US dropped in May, a sign that the housing crisis is not yet over. The Commerce Department said new home sales fell 0.6% in May from April to an annualised 342,000 units. Most economists had forecast a much stronger rate of 360,000.
The department revised April sales to 344,000, sharply below the 352,000 initially estimated. On a 12-month basis, May new home sales were down 32.8%. Analysts said the latest data on housing was disappointing.
