In May, real consumer durable goods spending was $1,809, 279 million, which brought real consumer durable goods spending back to its pre-pandemic level. The month-over-month rate of growth for durable goods spending was 2.4%, ending two months of contraction. 

The annual rate of growth decelerated for the third consecutive month, decelerating to the slowest rate of growth since June 2010. However, the real 10-year Treasury rate is falling at its fastest year-over-year rate since late 2012. So far, lower interest rates have been enough to overcome lower incomes and boost durable goods spending. The question is will that continue without a significant increase in employment?

Below are key spending categories that lead the most important manufacturing new orders and production indices. 

Accelerating Growth: appliances, electronics, food/beverage, pleasure boats

Decelerating Growth: durable goods, other non-durable goods

Accelerating Contraction: air transportation services, clothing/footwear, medical care, motor vehicles/part, total consumers

Decelerating Contraction: