European Investor
25 Jun 2026, 19:54
The latest U.S. economic data presented a mixed picture, with first-quarter GDP sharply higher than forecast while durable goods orders declined in May.
The U.S. economy expanded at an annualized rate of 2.1% in the first quarter, well above the previous 0.5% and exceeding economists' expectations of 1.6%. Meanwhile, durable goods orders fell 4.5% month-over-month in May, following an 8.5% increase in April. Although orders declined, the reading was slightly better than the expected 5.0% drop, indicating manufacturing demand held up somewhat better than anticipated after the previous month's surge.
Overall, the data reinforce the view that the U.S. economy remains resilient despite elevated interest rates. Stronger GDP growth supports expectations that the Federal Reserve can remain patient on interest rate cuts, while the moderation in durable goods orders suggests higher borrowing costs are gradually cooling business investment without signaling a sharp slowdown.
The U.S. economy expanded at an annualized rate of 2.1% in the first quarter, well above the previous 0.5% and exceeding economists' expectations of 1.6%. Meanwhile, durable goods orders fell 4.5% month-over-month in May, following an 8.5% increase in April. Although orders declined, the reading was slightly better than the expected 5.0% drop, indicating manufacturing demand held up somewhat better than anticipated after the previous month's surge.
Overall, the data reinforce the view that the U.S. economy remains resilient despite elevated interest rates. Stronger GDP growth supports expectations that the Federal Reserve can remain patient on interest rate cuts, while the moderation in durable goods orders suggests higher borrowing costs are gradually cooling business investment without signaling a sharp slowdown.