Boeing aircraft demand weighed on durable goods and overall factory orders, while firm core capital goods spending suggested business investment remained resilient and may shape Federal Reserve rate expectations.
US factory orders fell 1.3% in May, while durable goods orders dropped 4.5%, with weaker aircraft demand at Boeing and transportation-sector softness driving much of the decline. Despite the headline drop, robust core capital goods spending indicated underlying business investment remained on solid footing. The mixed report may influence expectations for how the Federal Reserve assesses interest rate policy if broader economic signals continue to soften.