U.S. durable goods orders, defined as those meant to last for more than three years, grew by 4.4% month-on-month to reach $208.114bn, according to the Department of Commerce.
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U.S. manufacturing showed strength in July as durable goods orders rebounded from two straight fall, the Commerce Department reported on Thursday.
Excluding those from the transportation sector, which can be volatile from one month to the next, orders grew by 1.5% to $150.04bn (consensus: 0.4%).
Economists polled by MarketWatch had expected 3.6% increase following a revised 4.2% drop in June.
There was a strong 10.5% rebound in transport orders for the month following the 11.4% decline previously with a very strong monthly gain in non-defence aircraft orders.
Orders for commercial planes leaped 90% in July after plunging by 60% in June.
However, shipments in the same category, which are used to calculate GDP, fell by 0.4 percent in July following a 0.5 percent drop in June.
Orders for commercial aircraft, which are volatile on a monthly basis, surged 89.9 percent after a 59.7 percent plunge in June. Deliveries for the month fell to 57 from 74.
“The key number in this report is the 1.6 per cent increase in orders for non-defense, non-aircraft capital equipment, the biggest gain since January; we expected a 1.0 per cent gain”, he said in a client note. 25, 2016, the Commerce Department releases its July report on durable goods.
Durable goods inventories increased 0.3 percent, the most this year and reflecting more stockpiles of metals.
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An important category that serves as a proxy for business investment rose 1.6 percent in July, up from a 0.5 percent rise in June.
