Orders for U.S. durable goods climbed more than projected in June as a surge in demand for aircraft and military hardware overshadowed a slump in business equipment spending.
Bookings for goods meant to last at least three years rose 1.6% for a second month, a Commerce Department report showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for a 0.3% gain. Orders excluding the volatile transportation category unexpectedly dropped 1.1% in June, the most in five months.
Corporate spending is contributing less to the expansion as cooler demand from U.S. consumers and weaker overseas sales crimp profits at companies such as Xerox Corp. Federal Reserve Chairman Ben S. Bernanke told Congress last week manufacturing has slowed and that policy makers stand ready to employ more stimulus if needed to help spur the world’s largest economy.
Another report showed first-time applications for unemployment benefits fell more than forecast last week, extending the period of volatility typically seen in July. Jobless claims dropped 35,000 in the period ended July 21 to 353,000, the U.S. Labor Department said.
