(Bloomberg) -- An increase in U.S. orders for business equipment last month and the biggest gain since February in such sales indicate improving demand at the start of the third quarter, Commerce Department data showed Friday.
Highlights of Durable Goods Report (July) |
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Key Takeaways
The pickup in core capital goods shipments and orders, along with an upwardly revised gain in June sales, suggests the equipment numbers that feed into GDP calculations were improving at the start of the second half of the year.
That also indicates that economic growth has the potential to broaden out beyond household spending.
Steady consumer demand is helping to underpin business optimism, and growth in overseas markets along with a weaker dollar may provide a boost to exports, further strengthening the outlook for manufacturing.
A plunge in aircraft orders probably played a big role in pushing down total bookings for durable goods: Boeing Co., the Chicago-based aerospace company, said it received 22 orders for aircraft in July, down from 184 the prior month.
Other Details
- Orders for motor vehicles and parts dropped 1.2 percent, the largest drop since May 2016 and reflecting weak sales
- Orders for fabricated metals rose 1 percent, while those for computers and electronic products climbed 1.6 percent
- Electrical equipment and appliances orders rose 2.6 percent
- Bookings for civilian aircraft and parts slumped 70.7 percent after a 129.3 percent surge; defense capital-goods orders advanced 14.7 percent
- Durable goods inventories rose 0.3 percent
--With assistance from Kristy Scheuble
To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net.
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle
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