New orders for costly US manufactured goods rose in July, led by the strongest demand for cars since January and solid gains in other sectors, the government said today.
Orders for durable goods - items such as refrigerators, designed to last three years or more - climbed 1 per cent in July after a rise of 2.6 per cent the previous month. The report was broadly in line with analysts' expectations for a 0.9 per cent increase.
Demand for motor vehicles and parts surged 5.5 per cent. Aided by record high incentives and low interest rates, July auto sales are expected to be the best month of the year, US automakers such as General Motors said.
Machinery orders also had a strong showing, climbing 1.8 per cent, while orders of computers and electronic products rose 1.9 per cent. Excluding transportation, orders rose 1.7 per cent and excluding spending on defence orders were up 1.4 per cent.
