Economy
July 25, 2019
Durable Goods Boosted by Aircraft Orders in June
Written by Sandy Williams
Durable goods orders rose 2 percent in June after two months of declines, surprising economists who expected a much softer increase. Orders increased to $246 billion from $241 billion in May. The rise was due primarily to commercial aircraft orders, which jumped 75.5 percent after two months of dismal results related to issues with Boeing’s 737 MAX aircraft. A 3.1 percent leap in motor vehicles and parts also contributed to June’s improvement.
Core capital goods, non-defense minus aircraft and a measure of future investment, appeared to bode well for manufacturing with a rise of 1.9 percent, but contradicted other manufacturing indices. Federal Reserve reports showed industrial production stalling in June and the ISM Manufacturing Index dipped to its lowest reading since October 2016.
