In May, real consumer durable goods spending was $2,293,534 (millions of $, SAAR), which was slightly less than the previous two months. Yet, May’s durable goods spending was 25.2% higher than it was one year ago in May 2020. May 2021 did not benefit from an easy comparison with one year ago as May 2020’s durable goods spending was similar to pre-lockdown spending levels. Therefore, durable goods spending in May 2021 was very strong.

In 11 of the last 12 months, month-over-month growth was more than 11%. The only exception was December, when the growth rate was still almost 9%, nearly double the historic average. And, for five straight months, the month-over-month rate of growth was faster than 15%.

The annual rate of growth accelerated for the 11^th straight month to 20.8%, which was the fastest rate of annual growth ever. This extreme rate of growth is causing significant problems in the supply chain as it is contributing to increased prices of raw materials, shipping problems, and production problems as some manufacturers are still dealing with reduced staffing.

 

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

Accelerating Growth: appliances, clothing/footwear, durable goods, electronics, medical care, motor vehicles/parts, other non-durable goods, total consumer

Decelerating Growth: food/beverage, pleasure boats

Accelerating Contraction: 

Decelerating Contraction: air transportation services