New orders for U.S. manufactured durable goods soared by much more than expected in the month of June, according to a report released by the Commerce Department on Thursday.
The Commerce Department said durable goods orders shot up by 4.7 percent in June after surging by an upwardly revised 2.0 percent in May.
Economists had expected durable goods orders to increase by 1.0 percent compared to the 1.8 percent jump that had been reported for the previous month.
The much stronger than expected growth reflected a continued surge in orders for transportation equipment, which spiked by 12.1 percent in June after jumping by 4.3 percent in May.
Orders for non-defense aircraft and parts led the way higher once again, skyrocketing by 69.4 percent in June after soaring by 33.4 percent in May.
Excluding the spike in orders for transportation equipment, durable goods orders rose by 0.6 percent in June after climbing by 0.7 percent in May. Ex-transportation orders were expected to come in unchanged.
Orders for computers and electronic products, electrical equipment, appliances and components, fabricated metal products and primary metals all saw notable growth.
The Commerce Department also said orders for non-defense capital goods excluding aircraft, a key indicator of business spending, rose by 0.2 percent in June after climbing by 0.5 percent in May.
Meanwhile, shipments in the same category, which is the source data for equipment investment in GDP, came in unchanged in June after rising by 0.3 percent in May.
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