Orders for long-lasting factory goods made in the U.S. rose sharply in August, lifted by a surge in aircraft bookings but also showing gains in business equipment that point to resilient investment.
New orders for durable goods increased 2.9 percent from the prior month, the Commerce Department said Thursday. Economists had expected a 0.5 percent decline. The bulk of the increase came from a 7.9 percent rise in transportation equipment, including a jump in commercial aircraft.
Even outside of the volatile transportation category, orders advanced 0.4 percent, better than forecasts for a decline. A key gauge of business investment—nondefense capital goods excluding aircraft—rose 0.6 percent after falling in July.
Within that core category, machinery and fabricated metal products posted solid gains, while computers and electrical equipment slipped.
The report suggests companies are still investing in equipment despite high borrowing costs and slowing global demand. Durable goods orders are volatile month to month, but the rebound offers a tentative sign of underlying strength in manufacturing after two months of weakness.
The figures are seasonally adjusted and not price-adjusted.
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