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Surprise rise in US durable goods orders

New orders for long-lasting goods manufactured in the US rose unexpectedly in September, led by surging demand for aircraft and autos, but analysts said the underlying trend remained weak.

US Commerce Department data showed orders for durable goods - items intended to last three years or more - rose 0.8% after a 5.5% drop in August.

The August decline previously was reported as 4.8%. Wall Street economists surveyed by Reuters had forecast a 1.2% decline in September orders.

US stock index futures added to gains after the surprise rise in orders, while US government debt prices pared gains.

However, year-to-date durable goods orders were 1.8% below the same period last year, and orders for non-defence capital goods excluding aircraft, seen as a barometer of business spending plans, fell 1.4% after decreasing 2.2% in August.

The US Commerce Department will report third-quarter gross domestic product tomorrow.