Orders for manufactured U.S. goods jumped 1.7% in May and rose fore the third month in a row, boosted by strong demand for passenger planes and new autos.

Economists polled by the Wall Street Journal had forecast a 0.9% decline. Durable goods are items meant to last a long time.

Orders rose a more modest 0.6% if transportation is excluded, the government said Tuesday. The transportation segment is a large and volatile category that often exaggerates the ups and downs in industrial production.

Higher interest rates have dampened demand for expensive manufactured goods and consumers have shifted more of their spending to services such as travel.

The trend is unlikely to change soon. The Federal Reserve might also raise interest rates again, giving manufacturers little reason to hire more or boost production.

Source : MarketWatch