Orders for U.S. durable goods rose more than forecast in June, showing a pickup in demand that will help propel manufacturing and the economy in the second half of the year.
Bookings for goods meant to last at least three years increased 4.2 percent, led by transportation equipment, after a revised 5.2 percent gain in May that was bigger than initially reported, the Commerce Department said today in Washington. The median forecast of 79 economists surveyed by Bloomberg called for a 1.4 percent advance. Unfilled orders for big-ticket goods rose the most since December 2007.
Gains in residential real estate and motor vehicle sales are helping make up for weakness in overseas markets and benefiting companies such as Ford Motor Co. (F) and Whirlpool Corp. (WHR) A pickup in business investment amid lean inventories would provide a boost to manufacturing after a first-half slowdown.
“The manufacturing sector seems to be growing, but not particularly strongly,” said David Sloan, senior economist at 4Cast Inc. in New York. “It’s a fairly positive report, though it’s not broad-based.” The figures suggest “there’s a recovery in place.”
Stock-index futures held losses after the figures, with the contract on the Standard & Poor’s 500 Index expiring in September falling 0.3 percent to 1,678.5 at 8:52 a.m. in New York.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.