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US durable goods orders up 22.6% in July

A large jump in aircraft orders sent US orders for durable goods rocketing 22.6 per cent in July to a new monthly record, Commerce Department data showed on Tuesday (Aug 26). 

WASHINGTON: A large jump in aircraft orders sent US orders for durable goods rocketing 22.6 per cent in July to a new monthly record, Commerce Department data showed on Tuesday (Aug 26). Civilian aircraft orders led by aircraft manufacturer Boeing's order book quadrupled from June to US$70 billion (S$87 billion), driving up the overall total of durable goods orders to US$300.1 billion, by far the best month ever.

Leaving out the transport sector, durable goods orders fell 0.8 per cent in the month, dragged down by a slowdown in orders for electrical equipment, appliances, and components, and by defence industry goods.

Economist Ian Shepherdson of Pantheon Macroeconomics said orders for core capital goods, like machinery, which show investment in production by US industry, fell in July, but looked firm if combined with upwardly revised data from June. For the May to July period, he noted, core capital goods spending was rising at an 11.6 per cent yearly rate.

And the jump in aircraft orders took the total for all durable goods orders so far this year to 1.70 trillion, a gain of 8.2 per cent over the same seven-month period of 2013. "The underlying trends here are solid," Shepherdson said.

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