Durable goods orders rose more than forecast in June
WASHINGTON -- Orders for long-lasting durable goods such as airplanes and electronics rose much more than expected in June, a positive sign for economic growth in the second half of the year.
The Commerce Department said Thursday that durable goods orders were up 4.2% in June from the previous month.
The rise was driven by a 12.8% increase in orders for transportation equipment, including a 31.4% jump for civilian aircraft.
Boeing had 287 new orders for jetliners in June, up from 232 the previous month, said Chris Rupkey, chief financial economist for the Bank of Tokyo-Mitsubishi in New York.
QUIZ: How much do you know about the federal budget cuts?
In addition, the figure for May was revised up to 5.2%, from the initially reported 3.6%. The increase in May was the highest monthly reading since 1992.
“Companies are not just sitting on cash. They are buying equipment, preparing for future growth,” Rupkey said.
Analysts had been expecting about a 1.4% increase in June. Durable goods orders are an important gauge of future economic activity in some of the nation’s key industries.
Excluding transportation equipment, durable goods orders were unchanged in June after a 1% increase in May.
Factoring out defense, another major sector, orders were up 3% in June after a 4.9% rise in May.
In an important monthly snapshot of private business investment, orders for non-defense capital goods, excluding civilian aircraft, were up 0.7% in June. The figure rose 2.2% in May.
Overall durable goods shipments in June were flat after a 1.3% in increase in May, indicating economic activity slowed at the end of the second quarter.
ALSO:
Kaiser’s rising premiums spark employer backlash
Walkout protests Wal-Mart warehouse working conditions
