Orders for new US civilian aircraft doubled in July, boosting orders for all durable goods by 1.7 per cent, the Commerce Department said today.
Excluding the 5.6 per cent gain in transportation goods, orders to US factories for durables rose 0.1 per cent in July after falling 0.6 per cent in June. It marked the first monthly increase since March.
Economists had predicted, on average, that total orders would rise 1.2 per cent in July, according to a survey conducted by CBS MarketWatch.
In addition, June's increase in total orders was revised higher, to a 1.1 per cent rate from 0.9 per cent previously.
Market reaction was muted. The better-than-expected headline number was offset by the tepid gain in ex-transportation orders. Orders are up 12.4 per cent in the year to date.
The report indicates patches of strength and weakness in the factory sector. Total orders increased smartly in each of the past two months primarily because of the leadership of one sector: Aircraft in July and defense goods in June.
Orders for core capital goods increased by 0.6 per cent in July after gaining 1.4 per cent in June.
Shipments of durable goods - a gauge of current production - increased 0.1 per cent last month after rising 1.1 per cent in June. Shipments of core capital goods increased 1.4 per cent.