Demand for U.S. manufactured goods rebounded more than expected in May, and a measure of business spending plans increased, the government reported Wednesday, but slowing global growth suggests the U.S. momentum may not be sustained. The Commerce Department said orders for durable goods-expensive manufactured items expected to last at least three years-increased 1.1 percent last month following a 0.2 percent decline in April. Economists had expected a May gain of 0.4 percent. Orders were lifted by a 2.7 percent increase in transportation equipment, as aircraft orders jumped nearly 5 percent and motor-vehicle demand increased, though at a slower pace than in the previous month. Excluding transportation, durable-goods orders rose 0.4 percent last month after dropping 0.6 percent in April. Demand for machinery, electrical equipment, and appliances rose, while demand for primary metals and computers fell. Non-defense capital goods orders excluding aircraft-a closely watched gauge of business spending plans-increased 1.6 percent in May, ending two consecutive months of declines. Economists expected the category to rise 1.7 percent. Slower growth in China and a likely recession in Europe have limited the U.S. manufacturing sector. Regional surveys of factory activity mostly have shown a weakening in orders in June.
