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‘Big Ticket’ Orders Soar 6% on Transport, Defense

Associated Press

Orders for “big ticket” durable goods soared 6% in August on the strength of big jumps in the military and transportation sectors, the government said today.

The Commerce Department said total orders jumped to a seasonally adjusted $123.1 billion last month. The big jump follows a huge 7.4% decline in July, the biggest in more than four years, and an 8.7% increase in June, which was the largest in 30 months.

Orders for transportation equipment in August were up by 20.9%, with more than half the increase for motor vehicles and parts. Auto orders had been weak in July as factories were switching over to a new model year.

That follows a 22.4% plunge in July and a 33.3% gain in June. The transportation category has been buffeted back and forth in recent months by big swings in orders for aircraft, ships and tanks.

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Orders for defense goods jumped 15.3% in August to $8.1 billion, following a 49.4% drop in July and a 68.3% increase in June. This category, which is also very volatile from month to month, overlaps transportation and includes military planes, tanks and ships.

Excluding defense goods, orders rose 5.4% last month, following a decline of 2.2% in July and an increase of 4.2% in June.

Excluding transportation, orders rose 1% in August, fell 0.9% in July and rose 0.7% in June.


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