Durable goods orders increased in June.

The unexpected 1.8% increase, led by continued demand for defense equipment, marked the third consecutive monthly hike in durable goods orders and gave rise to cautious optimism by government officials and private analysts about economic prospects in coming months following a year of sluggish activity in the industrial sector. The Commerce Department said orders for durable goods--items expected to last three or more years--rose to $104.9 billion in June following advances of 3.3% in May and 0.2% in April.