Durable goods orders jump 8.7%

Orders to U.S. factories for durable goods jumped by 8.7% in July, the largest increase in nine months, the Commerce Dept. reported today. The report follows the previous month's 4.5% drop in durable goods. The 8.7% increase in orders for durable goods, items expected to last at least three years, was the largest since a 9.2% spurt in October. Analysts had predicted a rise of only 1.4% to 2.7%. New

Tim Parry

Aug. 27, 2002

The 8.7% increase in orders for durable goods, items expected to last at least three years, was the largest since a 9.2% spurt in October. Analysts had predicted a rise of only 1.4% to 2.7%.

New orders rose in every category except electrical equipment and appliances, which saw a decrease. Orders for cars, trucks and parts increased 7.5%, following a 3% decline last month.

Excluding transportation equipment, which soared 20.8%, durable-goods orders rose a solid 3.9% in July.

Analysts said today's report may be a sign that businesses are ready to make capital investments, which would be needed for the economy to recover.