Durable goods orders climbed more than expected in June, driven by a jump in transportation orders.
Headline orders rose 3.4% while orders excluding transportation and defence rose 0.8%, according to the Census Bureau.
Economists had estimated that headline durable goods orders rose 3.2% in June month-over-month, and climbed 0.5% excluding transportation and defence orders, according to Bloomberg.
In May, headline durable goods orders fell 1.8%, more than expected. “Core” orders, which exclude the more volatile components, rose 0.4% to slightly beat expectations.
The Census Bureau noted that transportation orders led the increase with an 8.9% jump to $US78.4 billion.
Ahead of the data, several economists said they expected a rebound in civilian aircraft orders following the biennial Paris air show. Boeing reported up to 161 new orders, according to Wells Fargo.
Following the release, UBS’ Maury Harris wrote in a note to clients: “The durable goods report continues to stymie projections of rebound in capex. After the drop in capex since last fall, recent reports hinted at stabilisation. However, the report for June revised that May gain to more weakening although it also added a rebound in orders in June. On net, despite June strength, the long-awaited stabilisation in capex orders still looks like a hope rather than a reality.”