Orders for U.S. durable goods climbed more than forecast in July as a surge in demand for aircraft and autos eclipsed a decrease in business equipment.
Bookings for goods meant to last at least three years rose 4%, the most in four months, after falling a revised 1.3% in June, a Commerce Department report showed today in Washington. The median projection of 81 economists surveyed by Bloomberg News called for a 2% gain. Orders minus the volatile transportation equipment category unexpectedly climbed 0.7%.
Sustained gains in exports that have lifted sales at companies like Deere & Co. may allay concern about a bigger pullback in manufacturing, a mainstay of growth since the end of the recession. At the same time, confidence in the world’s largest economy has waned, indicating consumers and businesses may be reluctant to boost spending.
Orders for machinery, computers and communications equipment declined in July at the same time bookings snapped back for motor vehicles and civilian aircraft, today’s report showed.
Estimates for overall orders ranged from a 1% drop to a 7.5% surge. Forecasts for bookings excluding the volatile transportation category ranged from a decline of 1.5% to an increase of 1%.
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