WASHINGTON – New orders for U.S.-made durable goods surged a much greater-than-expected 3.1 percent in June as aircraft and manufacturing orders jumped, according to a government report released on Thursday that showed private sector economic strength even as the housing market slows.
Excluding transportation, orders for these expensive items built to last three years or more rose a larger-than-expected 1.0 percent, the Commerce Department said. That was the ninth gain in the last 11 months.
Economists polled by Reuters were expecting orders to rise by 1.8 percent overall and by 0.7 percent when transportation orders were stripped out.
May orders were revised to a 0.3 percent gain from an originally reported 0.2 percent drop.
Orders for civilian aircraft soared 8.8 percent while defense aircraft and parts orders gained 12.9 percent.
Orders for manufacturing, metals, and computers and electronic products also gained.
Meanwhile, the report showed capital goods orders excluding aircraft, a gauge for business spending, moderated to a 0.4 percent gain after a 1.3 percent rise in May.