Durable goods orders in US surge around 9.9 percent last month


(MENAFN) In July, US durable goods orders experienced a substantial increase of 9.9 percent, marking the fifth rise in the past six months. According to a report from the Commerce Department’s Census Bureau, new orders for manufactured durable goods surged by USD26.1 billion, bringing the total to USD289.6 billion. This robust growth significantly exceeded market expectations, which had forecasted a more modest monthly increase of 4 percent.

The revised figures for June showed a downward adjustment, with new orders being reduced from USD264.5 billion to USD263.6 billion. This revision reflects a deeper decline of 6.9 percent compared to the previously reported 6.6 percent decrease. The adjustment underscores the volatility in the durable goods sector and highlights the substantial turnaround seen in July's data.

Excluding transportation, new orders in July experienced a slight decrease of 0.2 percent. However, when defense-related orders were excluded, the increase in new orders was notably higher, rising by 10.4 percent. This indicates that while certain sectors within durable goods saw declines, the overall performance was buoyed by significant gains in other areas.

Transportation equipment was a major driver of the July increase, contributing an additional USD26.4 billion or a 34.8 percent rise, reaching a total of USD102.2 billion. This growth in the transportation sector reflects ongoing investment and demand for durable goods, which played a critical role in the overall surge in durable goods orders for the month.

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