WASHINGTON: Orders for long-lasting US manufactured goods rose more than expected in June, pointing to momentum in the economy heading into the third quarter.
The Commerce Department said yesterday durable goods orders increased 0.7 percent as demand increased from transportation to machinery and computers and electronic products.
The increase in orders for these goods, which range from toasters to aircraft that are meant to last three years or more, was above economists’ expectations for a 0.5 percent rise and followed a 1.0 percent drop in May. “This is consistent with broad, increasing demand throughout the economy,” said Gus Faucher, senior economist at PNC Financial Services in Pittsburgh. Non-defence capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rebounded 1.4 percent after declining 1.2 percent the prior month.