July’s order for U.S. durable goods beat expectations jumping by 4 percent on greater demand for automobiles and aircraft. Durable goods are defined as products intended to last for at least three years.
The increase comes after a 1.3 percent decrease in June and could provide a boost of confidence to markets that have suffered wide volatility in recent weeks.
“It’s going to take time before businesses become comfortable about investing and hiring,” said Ryan Sweet, senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “The improvement in July appears to be narrowly based.”
Source: Bloomberg