New orders for US-manufactured durable goods fell 4.5% month-on-month to $332 billion in May 2026, following an upwardly revised 8.5% surge in April and in line with market expectations. This was the steepest decline since June 2025 and came after two consecutive monthly increases.
The drop was largely driven by a 14.0% fall in transportation equipment orders, led by a sharp 51.8% plunge in nondefense aircraft and parts. These declines more than offset gains in defense aircraft and parts (+7.9%) and in motor vehicles and parts (+1.1%). Orders for capital goods also posted a significant decline of 13.6%, while primary metals (+3.0%) and machinery (+1.9%) registered solid increases.
Excluding transportation, new orders rose 1.3%, following an upwardly revised 1.4% increase in April. Excluding defense, orders slipped 4.6%, after an upwardly revised 8.4% jump in the previous month. Meanwhile, orders for nondefense capital goods excluding aircraft—a closely watched proxy for business investment plans—rose 1.6% in May, following a downwardly revised 0.7% decline in April.
