| August 27, 2008 Durable goods post strong increases in July, June
|
WASHINGTON (AP) - Orders for big-ticket manufactured goods
turned in a second consecutive strong monthly performance in July,
a far bigger-than-expected gain led by a huge jump in demand for
commercial aircraft.
The Commerce Department said Wednesday that orders for durable
goods rose 1.3 percent last month, far above the slight 0.1 percent
increase economists had been expecting.
The July increase matched a 1.3 percent rise in June, which was
revised up from an earlier reading of 0.8 percent. Both months
turned in the strongest gains since a 4.1 percent surge last
December.
Economists had been expecting a far weaker showing in July
reflecting their views that the manufacturing sector is being
battered by the slowdown facing the overall economy. Instead, the
report showed surprising strength in a number of areas.
Demand for commercial aircraft shot up 28 percent, a rebound
following a 21.3 percent drop in June.
Orders for motor vehicles rose by 1.2 percent, the second
straight monthly increase. However, economists do not believe that
strength can be sustained given all the troubles currently facing
the auto industry.
Overall, orders for transportation equipment were up 3.1 percent
last month after a 1.9 percent drop in June. Outside of
transportation, orders posted a 0.7 percent increase, surpassing />
the 0.3 percent decline analysts had expected.
Strength outside of transportation reflected strong gains in
such areas as primary metals, including steel and machinery.
Non-defense capital goods excluding aircraft, a category seen as
a good proxy for business investment, also rose by a strong 2.6
percent last month, the best showing since April.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
Related Stories:
[19 weeks ago]
[35 weeks ago]
[38 weeks ago]
[20 weeks ago]
