Durable goods orders up 0.8 percent in June
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(AP) - Orders to factories for big-ticket manufactured goods such as cars, appliances and machinery rose at the fastest pace in four months in June, a much stronger showing than had been expected.
The Commerce Department reported Friday that orders for durable goods increased 0.8 percent last month, far better than the 0.4 percent decline that economists had been expecting.
It was the best showing since a 1.1 percent rise in February and reflected strength in demand for heavy machinery, primary metals such as steel and even a slight rebound in the beleaguered auto industry.
New orders for motor vehicles and parts rose by 1.8 percent, the best showing in 11 months.
The increase was only a fraction of the big declines in previous months and was not seen as signaling any kind of sustained rebound from U.S. automakers. They are being battered by soaring energy prices that have caused buyers to turn away from formerly hot sellers such as trucks and sport utility vehicles.
Overall, demand for transportation goods fell by 2.6 percent as the slight increase in auto demand was offset by a big 25.1 percent plunge in orders for commercial aircraft. Demand for military aircraft was also down, falling by 8.6 percent.
Excluding the volatile transportation sector, orders for durable goods, items expected to last at least three years, shot up by 2 percent, the best showing since last December and much better than the 0.2 percent decline that had been expected.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
WASHINGTON (AP) _ Government data show that orders to factories for big-ticket manufactured goods rose at the fastest pace in four months in June, a much stronger showing than had been expected.
The Commerce Department reported Friday that orders for durable goods increased 0.8 percent last month, far better than the 0.4 percent decline that economists had been expecting.
It's the best showing since a 1.1 percent rise in February and reflects strength in demand for heavy machinery, primary metals such as steel and even a slight rebound in the beleaguered auto industry.
