U.S. Durables orders unexpectedly climbs in August [ICN.com Financial Markets]
(ICN.com Financial Markets Via Acquire Media NewsEdge) Orders for goods meant to last at least 3 years in the U.S. surprisingly climbed in August, signaling strength in business spending. Demand for all durable goods, those meant to last at least three years such as machinery and computers, rose 0.1 percent after plunging 8.1 percent in July. Analysts had expected a drop of 0.1 percent. Excluding transportation equipment, where demand is often volatile month to month, orders declined 0.1 percent after a 0.5 percent drop in July. Bookings for non-military capital goods excluding aircraft increased 1.5 percent after a 3.3 percent drop in July, the Commerce Department reported today in Washington. Orders for durable goods show how busy factories will be in the months to come, as manufacturers work to fill those orders. Durable goods orders tell investors what to expect from the manufacturing sector, a major component of the economy, and therefore a major influence on their investments. Demand for non-defense capital goods excluding aircraft is considered a proxy for future business investment in computers, electronics and other equipment. Last month's increase was the biggest since May. Shipments of those products, a measure used to calculate gross domestic product, advanced 1.3 percent in August after declining 1.4 percent the prior month. Sales were down 3.3 percent over the past three months at an annualized rate, compared with a 0.9 percent decline at the end of the second quarter, indicating business investment will take time to rebound.
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