New orders for core capital goods (nondefense capital goods excluding aircraft) rose 0.7 percent in May compared with April, and shipments of core capital goods increased 0.4 percent during the same period. The increase in new orders since January suggests that business spending on equipment has likely rebounded in the second quarter. The rise in shipments in May provides further indication that business investment has been recovering from the weakness seen earlier in the year. Year-over-year growth rates remained relatively modest in May compared with the strong postrecession bounce-back.
