Durable Goods Orders Surge Higher

Washington, DC, Feb. 25, 2010--Durable goods orders surged 3% in January to $175.7 billion, the Commerce Department estimated Thursday.

The 3% gain in orders was the biggest gain since July. December's orders were revised sharply higher as well to a 1.9% increase compared with the 1% gain reported last month.

Economists were looking for a 1.5% gain in total durable goods orders in January.

Most of the strength in January came from the 126% increase in volatile civilian aircraft orders. Boeing had reported higher bookings in December, but they showed up in the government data in January's report due to timing differences.

Outside of aircraft, most industrial sectors reported lower demand in January.

Excluding the 15.6% gain in transportation orders, orders fell 0.6% in January to $131 billion after rising 2% in November and December.