US July durable goods orders rise 8.7%

Orders for durable goods in the United States rose 8.7 per cent in July from the previous month, the US Commerce Department said this afternoon.

This is the largest increase since last October.

The July durable goods report was much stronger than expected. Economists had forecast durable goods orders to rise 2.2 per cent in July.

Orders fell a revised 4.5 per cent in June from the previous estimate of a fall of 4.1 per cent . On a year-on-year basis, July orders were up 7.2 per cent .

Excluding the transportation sector, durable goods orders rose 3.9 per cent in July, reversing a 3.9 per cent fall in June. This is the fourth increase in the past five months.