U.S. Durable Goods Orders Up 3.4% in June
Orders for durable goods increased in June, ending two months of declines. New orders for durable goods rose a seasonally adjusted 3.4% in June from May, according to the U.S. Department of Commerce. Economists polled by the Wall Street Journal had forecast orders would increase 2.7%.
The increase in June in part reflects a surge in aircraft demand, a component of the report that often swings sharply from month to month. Orders for nondefense aircraft and parts rose 66.1% in June. Excluding the transportation sector, orders increased 0.8%, the biggest increase since August 2014. Excluding defense, which is a volatile sector, orders increased 3.8%. Orders for nondefense capital goods excluding aircraft rose 0.9%, following a 0.4% decline in May.
Monday’s report suggests that U.S. manufacturers may be rebounding from the challenges presented by a strong dollar, harsh winter weather across much of the country, and a decline in the price of oil, which has depressed spending on mining and oil and gas machinery.