BUSINESS

Durable goods orders rebound in positive manufacturing sign

Boosted by aircraft demand, durable goods orders jumped 0.7% in June after a sharp drop in May
June's rise in durable goods orders was third in four months and a positive sign for economic growth

Orders for jetliners, machinery and other long-lasting durable goods rebounded last month in a positive sign for the important manufacturing sector, the Commerce Department said Friday.

New orders rose 0.7% in June after a sharp 1% decline the previous month.

Economists had expected a smaller rise of 0.5%.

The June increase was the fourth in five months and a signal of stronger overall economic growth this year after a weather-fueled contraction in the first quarter.

Also, Friday's report showed a big jump in a key category viewed as a barometer for business investment plans.

Orders for non-defense capital goods, excluding often-volatile aircraft figures, rose 1.4% in June after a 1.2% decline the previous month.

The Commerce Department originally reported those orders increased 0.7% in May.

Commercial aircraft orders played a major role in June's overall increase. They were up 8.2% after a 2.7% decline in May.

Boeing Co. said orders for its aircraft increased to 109 in June, from 99 the previous month.

Defense aircraft orders also were strong, rising 15.3% last month.

But that was less than May's 17.6% increase. Motor vehicle orders slipped as well, dropping 2.1% last month after rising 1.6% in May.

Transportation orders can vary widely from month to month. Excluding those, new orders rose 0.8% in June after a 0.1% decline the previous month.

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Copyright © 2015, Los Angeles Times
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