An 8.8% increase in new orders for non-defense aircraft and parts gave a significant boots to new orders for manufactured durables in June. Total new orders for durables increased 3.1% to $216.3 billion last month, the U.S. Commerce Department reported on July 27.
Manufactured durables generally are big-ticket goods, such as airplanes, autos, and appliances that are designed to last at least three years.
June's increase was the fourth increase in the past five months and, thanks to aircraft orders, more than 10 times May's three-tenths-percent increase.
The so-called core durable orders number -- non-defense capital goods excluding aircraft -- rose four-tenths of a percent in June, a bit stronger than expected, validating Merrill Lynch & Co.'s belief that capital expenditures will pick up in the current calendar quarter.