Orders for U.S.-made durable goods rose 1.1% in July from June, the Commerce Department reported on Wednesday, exceeding the 0.5% increase forecasted by economists. The prior month’s reading was revised to a 0.5% gain from an initial estimate of 0.4%.
Excluding transportation equipment—such as aircraft—orders increased 0.4%, below the 0.6% forecast. Demand for nondefense capital goods excluding aircraft, a proxy for business investment, rose 0.2%, well below the 0.7% expected by analysts.
The July data reflects a mixed picture: while transportation orders, particularly for motor vehicles and parts, drove the headline gain, core capital goods—a key indicator of future business spending—underperformed. The softness in core orders suggests caution among businesses regarding expansion plans despite improving economic sentiment.
