New orders for US-made durable goods rose much more than expected in June, according to government reports today.
Orders for durable goods increased 3.1 per cent on demand for both civilian and defence aircraft, the Commerce Department said.
But even excluding transportation, orders for these expensive items built to last three years or more rose a larger-than-expected 1 per cent, the Commerce Department reported. That was the ninth gain in the last 11 months.
Signs of a busy private sector are likely to factor into Federal Reserve concerns about inflation when the central bank meets to set interest rate policy on August 8th.
US Treasury prices turned lower after the reports, and the dollar rose. Interest rate futures showed markets raising their bets to a 49 per cent chance the Fed will raise interest rates an 18th straight time in August to 5.5 per cent.
May durables orders were revised to a 0.3 per cent gain from an originally reported 0.2 per cent drop. Orders for civilian aircraft soared 8.8 per cent while defence aircraft and parts orders gained 12.9 per cent.
Orders for manufacturing, metals, and computers and electronic products also gained.
A separate Labor Department report showed that businesses are holding on to their workers, as the number of Americans seeking unemployment benefits last week hit its lowest level in six weeks.
New applications for state jobless benefits fell to a seasonally adjusted 298,000 in the week ended July 22nd, from an upwardly revised 305,000 claims in the previous week.