WASHINGTON (MarketWatch) — Orders for durable or long-lasting goods made in the U.S. surged 4.4% in July to mark the biggest gain since last fall, a sign that an extended decline in production may be over.
Economists polled by MarketWatch had expected 3.6% increase following a revised 4.2% drop in June. All numbers are seasonally adjusted.
Higher demand for passenger jets led the way as expected. The Pentagon also put in a bunch of new orders.
Orders for commercial planes leaped 90% in July after plunging by 60% in June. Large swings often take place in the summer around the timing of the industry’s annual air show.
Orders for new autos, however, were flat.
Stripping out the volatile transportation sector, orders rose a smaller 1.5%, the Commerce Department said Thursday. Still, that matches the biggest increase of the year.
Another good sign was the first rise in inventories in seven months. Businesses has cut production earlier in the year after a glut developed, a problem exacerbated by weak export sales and a slump in the U.S. energy industry grappling with low oil prices.
