New orders for durable goods in the United States unexpectedly rose in May 2024, according to data released by the U.S. Census Bureau. This positive sign for the manufacturing sector comes after a period of some uncertainty.
Key Points:
- Upward Trend: Durable goods orders increased by 0.7% month-over-month in May, defying analyst expectations of a decline.
- Building on Gains: This follows a 0.8% increase in April, suggesting a potential turnaround in manufacturing activity.
- Focus on Core: Core durable goods orders, excluding volatile transportation items, also saw a modest increase, indicating broader-based growth.
What does this mean for the USD?
A rise in durable goods orders is generally considered positive for the U.S. dollar (USD) as it reflects increased business confidence and investment in long-lasting manufactured goods. However, the Federal Reserve’s monetary policy decisions and global economic factors will also play a role in determining the USD’s value.
Is this a sustainable trend?
While the recent increase is encouraging, it’s important to monitor future data releases to see if the trend continues. Factors like inflation and supply chain disruptions could still impact manufacturing activity.
Leave a Reply