BUSINESS
08/26/2014 08:39 EDT | Updated 10/26/2014 05:59 EDT

US durable goods orders surge 22.6 per cent in July but outside transportation, orders weak

WASHINGTON - Business orders for long-lasting manufactured goods shot up by the largest amount on record in July but much of the strength came from a huge surge in demand for commercial aircraft. Outside of transportation, orders actually fell.

The Commerce Department says orders for durable goods rose 22.6 per cent in July on a seasonally adjusted basis, the largest one-month gain on record. The strength came from a 318 per cent increase in orders for civilian aircraft which helped lift orders for transportation equipment by a record 74.2 per cent.

But excluding transportation, orders fell 0.8 per cent, and a key category that serves as a proxy for business investment plans dropped 0.5 per cent, but this dip came after a sizable 5.4 per cent rise in the previous month.