U.S. orders for durable goods rose more than expected in June, led by a surge in motor vehicles and strong demand from U.S. businesses.
Orders climbed 7.3 percent last month, the Commerce Department said Monday. That was the second consecutive month of strong gains after the pandemic lockdown induced crash in March and April. In May, orders rose 15.1 percent.
Economists had expected a 6.5 percent increase in durable goods, those meant to last at least three years.
Orders for transportation equipment, also up two consecutive months, jumped $9.2 billion or 20.0 percent to $55.3 billion. Motor vehicle orders soared 85.7 percent after many U.S. auto plants reopened following the pandemic shutdowns.
Nondefense aircraft orders, which have fallen off a cliff as airline travel has plummeted, fell to negative $10.4 billion because of cancelations. That amounts to a 462.3 percent monthly decline.
Nondefense new orders for capital good excluding aircraft, the so-called core capital goods that are a proxy for business investment, rose 3.3 percent to $64,3 billion. That was better than twice what economists had forecast for the month.