U.S. durable goods orders excluding defense dropped sharply by 4.6% month-over-month in May 2026, reversing an 8.1% gain recorded in April. The figures, updated on 25 June 2026, highlight a notable swing in a key gauge of underlying demand for long-lasting manufactured goods.
The comparison, measured on a month-over-month basis, shows that April’s robust 8.1% increase over March has been followed by a marked pullback, as May orders fell relative to April. This indicator, which strips out defense-related spending, is closely watched by markets as it offers a clearer view of private-sector investment trends.
The abrupt shift from strong growth to contraction suggests a cooling in momentum within the U.S. manufacturing and capital goods sector between April and May 2026, raising questions about the durability of recent investment strength as the second quarter progresses.
