New home sales in the United States increased during May, but the level of sales was revised lower for April and March.

Sales of single-family homes rose 2.1% to a seasonally adjusted annual rate of 1.298 million, the U.S. Commerce Department said today.

Economists had called for sales to rise 0.3% to a 1.320 million annual rate.

April sales slipped a revised 0.1%. The government lowered the annual rate to 1.271 million from an earlier estimated 1.316 million. March sales rose 2.0% to 1.272 million — lower than the earlier estimated 1.313 million.

Separately, Commerce said demand for U.S. durable goods posted the biggest increase in more than a year during May as civilian aircraft orders surged.

Orders for goods designed to last at least three years increased a seasonally adjusted 5.5% to US$210.69 billion last month after rising 1.4% in April, Commerce said. April demand was earlier estimated rising 1.9%. Orders fell 1.5% in March and slipped 0.1% in February.

Non-defense aircraft climbed 164.8% last month after advancing 23.6% in April. Excluding the transportation sector, however, demand for all other durables slid 0.2% in May. Ex-transportation orders fell 0.7% in April.

Orders for non-defense capital goods excluding aircraftfell 2.3% last month, the largest decrease since a 4.0% fall in October 2004. Orders rose 1.7% in April.

The 5.5% increase in overall durables was the largest since orders rose 5.9% in March 2004. Economists had expected orders to climb by 1.4%.