Durable goods orders surge in July on aircraft
There are long lasting manufactured goods for the U.S. as an outcome of aircrafts being pushed by new orders. The fastest pace for Durable goods in two years.
Durable goods orders jumped 4.9 percent, the largest advance since July 2007, after falling 1.3 percent in June, the Commerce Department said. That was well above markets expectations for a 3 percent increase.
"On the surface, it looks good, but if you look a little closer, that just underscores the continued headwinds that face the U.S. economy," said Joe Manimbo, currency trader at Travelex Global Business Payments in Washington.
New orders for transportation equipment jumped 18.4 percent, the biggest increase since September 2006, while capital goods orders rose 9.5 percent in July --- the largest gain since December 2007.
The durable goods report is positive news, "the important news is yet to come" said Peter Jankovskis, co-chief investment officer, Oakbrook Investments in Lisle, Illinois.
Analysts polled by Reuters had expected core capital goods to increase 1 percent. The prior month was revised to show a 3.6 percent rise, previously reported as a 2.6 percent increase.
Durable goods orders are a leading indicator of activity in manufacturing, which in turn provides a good barometer for overall business health.