Orders for long-duration U.S made manufactured goods, from frying pans to automobiles and airplanes, plunged 6, 8 percent in July as bookings for transportation equipment fell 19 percent.
It was the largest drop in durable goods orders since August 2014 and followed a 6.4 percent increase in June, according to the Commerce Department on Friday. Boeing Company of Chicago reported just 22 new aircraft orders last month as opposed to 184 in June.
However, new orders for capital-goods rose slightly more than predicted in July and shipments were far ahead of estimates, suggesting that, if sustained, business spending into the third quarter may provide additional impetus for economic growth...
Non-defense capital goods orders excluding aircraft, also called 'core capital good’ considered a proxy for business capital expenditures, climbed 0.4 percent last month after being flat in June. The median estimate from economists had been for a gain of 0.3 percent. Orders were 3.3 percent higher than a year earlier.
Shipments of 'core capital goods most of which were ordered months or even years prior, vaulted 1.0 percent in July after June's revised 0.6 percent gain.
These core capital goods shipments are used by the Commerce Department's Bureau of Economic Research to calculate the business capital equipment expense component of gross domestic product. The June figures were initially listed at 0.1 percent. .
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