Aircraft send US durable goods orders 22.6% higher in July

Tuesday 26 August 2014 17.59
A large order by Boeing during the month pushed overall figures higher
A large order by Boeing during the month pushed overall figures higher

A large jump in aircraft orders sent US orders for durable goods rocketing 22.6% in July to a new monthly record, Commerce Department data has shown.

Civilian aircraft orders led by aircraft manufacturer Boeing's order book quadrupled from June to $70bn, driving up the overall total of durable goods orders to $300.1bn, by far the best month ever.

Leaving out the transport sector, durable goods orders fell 0.8% in the month, dragged down by a slowdown in orders for electrical equipment, appliances, and components, and by defence industry goods.

Economist Ian Shepherdson of Pantheon Macroeconomics said orders for core capital goods, like machinery, which show investment in production by US industry, fell in July, but looked firm if combined with data from June.

For the May-July period together, he noted, core capital goods spending was rising at an 11.6% yearly rate. 

And the jump in aircraft orders took the total for all durable goods orders so far this year to $1.70 trillion, a gain of 8.2% over the same seven-month period of 2013.

"The underlying trends here are solid," Shepherdson said.