US government figures show that sales of new homes surged 9.6% in July, in a further sign of recovery in the troubled housing sector.
Sales of new single-family homes rose to a seasonally adjusted annual rate of 433,000, the Commerce Department said. That was well above analyst estimates of 390,000. though the figure was still 13.4% below the sales pace of a year ago.
The gains were helped by price cuts, with the median sales price 11% below last year's. The data also showed a fall in inventory levels, reducing the glut of new homes for sale.
Aircraft surge lifts durables orders
Separate figures from the Commerce Department showed that new orders for US manufactured durable goods jumped by a sharper than expected 4.9% in July as the economy showed signs of emerging from recession. The figures were boosted by particularly strong aircraft orders.
It was the third increase in the last four months and the largest percentage increase since July 2007, but orders were still 25.8% lower than a year earlier.
Most analysts had expected a 3.2% increase in July following a 1.3% drop in June amid persistent reports indicating that the world's largest economy was slowly emerging from recession that struck in December 2007.
Durable goods - those likely to last three years or more, such as cars and appliances, and one measure of business demand - increased by $7.8 billion or 4.9% to $168.4 billion in July, the Commerce Department said.
Excluding transportation, new orders increased 0.8%, it said. Excluding defence, the increase was 4.3%. Shipments of manufactured durable goods was also up in July for the second consecutive month, increasing by $3.5 billion or 2% to $173.1 billion.
