New orders for big-ticket manufactured goods dropped more than expected in May.
A report from the U.S. Commerce Department showed that durable goods orders fell 2.2 percent in May.
This followed a revised 3.3 percent increase in the previous month. Economists had expected a drop, but they had generally predicted a more modest retreat.
Durable goods are those items meant to last at least 3 years. Tracking orders for the category is considered a good gauge of the health of the heavy manufacturing sector.
The drop in durable goods orders were impacted by a sharp drop in orders for defense aircraft and parts. This segment alone saw a 34 percent drop from the previous month.
Excluding the transportation sector, durable goods orders were down just 0.3 percent.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.