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US durable goods orders rebound in June

Durable goods orders in the United States rebounded in June from a sharp fall in May, boosted by a jump in defence aircraft orders, official data released on Friday (July 25) showed.

WASHINGTON: Durable goods orders in the United States rebounded in June from a sharp fall in May, boosted by a jump in defence aircraft orders, official data released on Friday (July 25) showed.

Durable goods orders rose 0.7 per cent in June, after falling 1.0 per cent in May, the Commerce Department said.

The June increase, the fourth in the past five months, was much stronger than the 0.3 per cent rise expected by analysts, a positive sign of momentum in the manufacturing industry.

Excluding transportation, which tends to be volatile month-over-month, new orders rose 0.8 per cent in June.

Orders for defence aircraft and parts had the biggest increase, up 15.3 per cent from May. Non-defence aircraft orders rose 8.2 per cent.

Machinery orders rose 2.4 per cent and manufacturing orders gained 1.6 per cent.

Offsetting the gains were automobile orders, which dropped 2.1 per cent; computers, down 13.9 per cent; as well as communications equipment, appliances and fabricated metal products.

Year-over-year, durable goods orders were up 3.9 per cent.

"Smoothing out the results over three months, we're seeing the second straight month of double-digit annualised percentage changes," said Jennifer Lee of BMO Capital Markets.

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