Durable Goods Orders Rise, Lifting Stocks

New orders for manufactured durable goods in May rose more than expected, according to a Commerce Department report, boosting stocks Tuesday. The increase suggests that the manufacturing sector is continuing to strengthen.

Orders increased by 1.9 percent, surpassing economists’ forecasts of a 0.5 percent rise. Excluding transportation, new orders increased 0.3 percent. In April, orders declined 2.8 percent.

The Dow Jones Industrial Average responded positively to the news, climbing in morning trading. Investors are interpreting the durable goods data as a sign of continued economic growth.

Durable goods are items expected to last at least three years, such as cars, appliances, and machinery. The report is considered a key indicator of future manufacturing activity.

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