Washington, DC, July 27, 2006--Durable goods orders rose 3.1% in June, led by a surge in demand for transportation goods, the Commerce Department said Thursday.
Excluding the 8.6% rise in transportation orders, orders for durable goods increased 1%, the government said.
New orders were stronger than the 2% expected by economists.
May's orders were revised higher to show a 0.3% gain instead of the 0.2% loss previously reported.
Durable-goods orders have risen in four of the past five months, helped by steady export demand for aircraft. Orders for durable goods are up 9% year-to-date.
Orders for core capital equipment rose 0.4% in June, down from a 1.3% gain in May. Core capital equipment orders are seen as the best gauge of business investment intentions.
Transportation orders were fattened by an 8.8% rise in civilian aircraft, a 12.9% rise in defense airplanes and, most importantly, an 85% rise in "other" transportation goods, such as ships and rail equipment.
Orders for defense capital goods increased by 51.2%, suggesting a large Pentagon order for ships. Excluding volatile civilian aircraft and defense orders, total orders rose 1.1% in June after a 1.9% increase in May.
Shipments of durable goods rose 0.1% in June, down from the 3% increase in May. Shipments of core capital equipment fell 0.2% after no change in May. Shipments are a key input into gross domestic product.
Shipments are up 7.6% year-to-date. The figures are not adjusted for price changes.
Inventories of durable goods increased 0.6% in June. Unfilled orders - a gauge of future output - rose 1.7%, led by transportation goods.
Orders for computers and electronics (excluding semiconductors) rose 3.4%. Shipments of electronics fell 1%. Orders for machinery fell 0.3% while shipments rose 1.6%. Orders and shipments for electrical equipment fell 1
