By John McCormick

Orders for cars, appliances and other durable goods increased in May, signaling strength in the U.S. economy despite supply and labor shortages and elevated input costs.

New orders for durable goods-products meant to last at least three years-increased 2.3% to a seasonally adjusted $253.3 billion in May when compared with April, the Commerce Department said Thursday. Economists surveyed by The Wall Street Journal expected a 2.6% gain.

Orders declined 0.8% in April from March, a slightly better reading than the previous estimate of down 1.3%. Demand for durable goods has increased in 12 of the last 13 months.

Low business and retail inventories have translated to increased demand for manufacturers for much of the past year, but supply-chain issues continue to constrain production and delay some shipments.

New orders for nondefense capital goods excluding aircraft-so-called core capital-goods orders, a closely watched proxy for business investment-declined 0.1% in May from the previous month. The prior month such orders were up 2.7%.

Write to John McCormick at john.mccormick@wsj.com

(END) Dow Jones Newswires

June 24, 2021 09:13 ET (13:13 GMT)