U.S. economic data delivered a positive surprise as new orders for durable goods rose far more than anticipated, pointing to renewed momentum in the manufacturing sector. Durable goods orders increased by 5.3%, comfortably above economists’ expectations of a 3.1% rise.
The indicator tracks changes in the value of new orders placed with manufacturers for long-lasting items, such as machinery and transportation equipment. The latest increase suggests solid underlying demand and hints at stronger factory activity in the months ahead.
The gain also represents a notable turnaround from the prior period, when durable goods orders fell by 2.1%. That rebound underscores a sharp improvement in conditions after the earlier contraction.
Stronger-than-expected durable goods data is typically viewed as supportive for the U.S. dollar. The robust reading points to healthier demand for U.S.-made products and a manufacturing sector that may be regaining strength, factors that can underpin the currency.
Beyond the immediate market impact, the surge in orders could have wider implications for the economy. Because durable goods orders often serve as a forward-looking signal for production and investment, the latest jump may indicate that overall economic activity is picking up after a recent slowdown.
Overall, the sizeable increase in durable goods orders — beating forecasts and reversing the previous decline — offers an encouraging signal for U.S. manufacturing and the broader economic outlook, while also providing potential support for the dollar.