U.S. durable goods orders disappointed, casting a pall of further economic uncertainty over the U.S. economic recovery.
Demand for U.S. manufactured durable goods increased far less than expected in July, rising just 0.3% in July as large gains in civilian airplanes and cars were offset by declines outside the transportation sector, the Commerce Department said Wednesday, the latest signs that U.S. manufacturing growth is under pressure. Economists had expected a 2.8% gain.
Transportation equipment orders surged 13.1% in July, boosted by non-defense aircraft and parts, as well as motor vehicles and parts. But outside transportation, orders for all other durables fell by 3.8% in July, the biggest drop since January 2009. Capital spending by businesses also fell sharply.
