Durable-Goods Orders Rebound in Positive Manufacturing Sign

(Los Angeles Times/MCT) -

Orders for jetliners, machinery and other long-lasting, or “durable,” goods rebounded last month in a positive sign for the important manufacturing sector, the Commerce Department said Friday.

New orders rose 0.7 percent in June, after a sharp 1 percent decline the previous month.

Economists had expected a smaller rise of 0.5 percent.

The June increase was the fourth in five months, and a signal of stronger overall economic growth this year after a weather-fueled contraction in the first quarter.

Also, Friday’s report showed a big jump in a key category viewed as a barometer for business investment plans.

Orders for non-defense capital goods, excluding often-volatile aircraft figures, rose 1.4 percent in June, after a 1.2 percent decline the previous month.

The Commerce Department originally reported those orders increased 0.7 percent in May.

Commercial aircraft orders played a major role in June’s overall increase. They were up 8.2 percent, after a 2.7 percent decline in May.

Boeing Co. said orders for its aircraft increased to 109 in June, from 99 the previous month.

Defense aircraft orders also were strong, rising 15.3 percent last month.

But that was less than May’s 17.6 percent increase. Motor-vehicle orders slipped as well, dropping 2.1 percent last month, after rising 1.6 percent in May.

Transportation orders can vary widely from month to month. Excluding those, new orders rose 0.8 percent in June, after a 0.1 percent decline the previous month.