{{Orders for long-lasting U.S. manufactured goods unexpectedly rose in April and consumer confidence perked up in May, supporting views of a rebound in economic growth this quarter.}}
Other data on Tuesday showed underlying strength in the housing market as home prices continued to increase in March. Services industries, which dominate the economy, grew at a steady clip in May.
“It appears that the economy continues to bounce back from the harsh winter,” said John Ryding, chief economist at RDQ Economics in New York.
Durable goods orders increased 0.8% as demand for defense capital goods surged and orders for fabricated metal products, transportation equipment and electrical equipment, appliances and components rose, the Commerce Department said.
Durable goods range from toasters to aircraft and are meant to last three years or more.
Orders advanced by a revised 3.6% in March. Economists had forecast orders falling 0.5% after a previously reported 2.5% rise in March.
While non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 1.2%, March’s orders were revised to a 4.7% gain.
That was the largest rise since November and economists said it would be a boost to second-quarter business spending.
Orders for the so-called core capital goods were previously reported to have risen 2.9% in March.
Separately, the Conference Board said its index of consumer attitudes rose to 83 in May from 81.7 in April. Improving household confidence should boost consumer spending, which accounts for more than two-thirds of U.S. economic activity.
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