New orders for U.S. manufactured durable goods registered the biggest monthly gain on record in July thanks to strong demand for transportation equipment, the U.S. Commerce Department reported Tuesday.
Orders for durable goods increased 22.6 percent to 300.1 billion U.S. dollars in July following a growth of 2.7 percent in June. The increase, up five of the last six months, was the largest since the data were first published in 1992.
Orders for transportation equipment increased 74.2 percent to 133 billion U.S. dollars. Demand for commercial aircraft, a volatile month-to-month category, increased by more than three-fold.
Orders for non-defense capital goods excluding aircraft, a gauge for business spending plans, decreased 0.5 percent in July.
Excluding the volatile transportation sector, new orders for manufactured durable goods decreased 0.8 percent.
The durable items are expected to last at least three years.