(Adds details, analyst comments, updates markets)
* Durable goods orders rise 0.8 percent
* Core capital goods orders fall 1.2 percent
* Consumer confidence rises, services industries grow
By Lucia Mutikani
WASHINGTON, May 27 Orders for long-lasting U.S.
manufactured goods unexpectedly rose in April and consumer
confidence perked up in May, supporting views of a rebound in
Other data on Tuesday showed home prices moving higher in
March and services industries, which dominate the economy,
growing at a fast clip in May.
"It appears that the economy continues to bounce back from
the harsh winter," said John Ryding, chief economist at RDQ
Economics in New York.
Orders for durable goods, items ranging from toasters to
aircraft that are meant to last three years or more, climbed 0.8
percent last month after an upwardly revised 3.6 percent gain in
March, the Commerce Department said.
Demand for defense capital goods surged and orders for
fabricated metal products, transportation gear and electrical
equipment, appliances and components all rose.
While non-defense capital goods orders excluding aircraft, a
closely watched proxy for business spending plans, fell 1.2
percent, the March reading on these so-called core capital goods
was revised sharply higher to show a 4.7 percent gain - the
largest since November.
"The large upward revision hints at a stronger handoff into
the second quarter," said Gennadiy Goldberg, an economist at TD
Securities in New York. "The data is indicative of a pickup in
capital investment activity during the spring."
Separately, the Conference Board said its index of consumer
attitudes rose to 83 in May from 81.7 in April as households'
labor market views improved. Rising household optimism should
boost consumer spending, which accounts for more than two-thirds
of U.S. economic activity.
HOUSE PRICES RISE
Another report showed house prices continued to appreciate
in March. The pace, however, is moderating. That could help the
market, where rising prices and mortgage rates have undercut
sales. The Standard & Poor's/Case Shiller gauge of prices in 20
metropolitan areas rose 12.4 percent in March from a year ago.
The reports helped to lift U.S. stocks and push the Standard
& Poor's 500 index to a record high. Prices for U.S. Treasury
debt fell. The dollar was flat against a basket of currencies.
Core capital goods shipments, which are used to calculate
equipment spending in the government's GDP measurement, fell 0.4
percent last month after rising 2.1 percent in March.
At the same time, durable goods inventories rose only 0.1
percent, suggesting little inventory growth in the second
quarter. Morgan Stanley lowered its second-quarter growth
estimate to an annual pace of 3.7 percent from 3.9 percent.
Orders for defense capital goods jumped 39.3 percent, the
largest rise since December 2012, and unfilled orders rose
solidly, a sign factory activity will continue to push ahead.
Separately, financial data firm Markit said its "flash"
services Purchasing Managers Index rose to 58.4 in May from 55.0
in April. A reading above 50 signals expansion in services
(Reporting by Lucia Mutikani; Additional reporting by Sam
Forgione in New York; Editing by Andrea Ricci)