Reflecting a sharp jump in orders for transportation equipment, the Commerce Department released a report on Thursday showing a substantial increase in new orders for U.S. manufactured durable goods in the month of June.
The Commerce Department said durable goods orders spiked by 6.5 percent in June after edging down by a revised 0.1 percent in May.
Economists had expected durable goods orders to surge up by 3.0 percent compared to the 1.1 percent drop originally reported for the previous month.
The bigger than expected increase in durable goods orders came as orders for transportation equipment shot up by 19.0 percent in June after falling by 1.6 percent in May.
Orders for non-defense aircraft and parts soared by 131.2 percent in June following a 1.4 percent drop in the previous month.
Excluding orders for transportation equipment, durable goods orders edged up by 0.2 percent in June after climbing by 0.6 percent in May. Ex-transportation orders had been expected to rise by 0.4 percent.
Meanwhile, the report said orders for non-defense capital goods excluding aircraft, a closely watched indicator of business spending, edged down by 0.1 percent in June after climbing by 0.7 percent in May.
Shipments in the same category, which are used to calculate GDP, rose by 0.2 percent in June after rising by 0.4 percent in May.
by RTT Staff Writer
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