WASHINGTON — U.S. July durable goods data show a continued broad manufacturing recovery.
July durable goods orders printed up 1.3%, much better than expected. After upward revisions to prior months, this marks a third good gain and probably a bottoming in the factory sector.
Orders excluding transportation gained 0.7% — the series is now up in four of the last five months — and nonmilitary orders posted 2.8% higher, also showing recovery. Boeing Corp. reported 70 new orders for commercial aircraft in July after 62 in June, so it’s no surprise that nonmilitary aircraft jumped 28%.
However, strength also was seen in machinery at plus-4.6%, primary metals at a 2.2% rise, communications equipment at a 2.9% increase, and transportation at plus-3.1%. Electrical equipment orders were down 6% in an anomaly after two months of solid gains.
— Market News International