U.S. Durable Goods Orders Unexpectedly Climb 2.0% In July

(RTTNews) - New orders for U.S. manufactured durable goods unexpectedly saw a notable increase in the month of July, according to a report released by the Commerce Department on Wednesday.

The Commerce Department said durable goods orders climbed by 2.0 percent in July after jumping by an upwardly revised 4.1 percent in June. The continued increase surprised economists, who had expected orders to drop by 0.4 percent.

Orders for transportation equipment led the increase once again, surging up by 4.7 in July after soaring by 10.7 percent in June.

The report said orders for motor vehicles and parts jumped by 4.0 percent, while orders for aircraft and parts gave back ground after spiking higher in the previous month.

Excluding the sharp increase in orders for transportation equipment, durable goods orders rose by a more modest 0.6 percent in July following a 1.0 percent increase in June. Economists had expected ex-transportation orders to rise by 0.4 percent.

The increase in ex-transportation orders partly reflected notable growth in orders for computers and electronic products, machinery, and electrical equipment, appliances, and components.

The Commerce Department also said orders for non-defense capital goods excluding aircraft, a closely watched indicator of capital spending, surged up by 2.2 percent in July after climbing by 1.4 percent in June.

Shipments in the same category rose by 0.6 percent in July following a 0.9 percent increase in the previous month.

Next Wednesday, the Commerce Department is scheduled to release a separate report on factory orders in the month of July. The report includes data on orders for both durable and non-durable goods.