Aircraft pull US durable goods orders into June rebound

New orders for US manufactured durable goods surged in June on the back of aircraft orders, rebounding from two consecutive declines, the Commerce Department reported Monday.

Durable goods orders advanced 3.4 percent in June following a 2.1 percent decline in May and a 1.7 percent fall in April.

Excluding the volatile transportation equipment sector, durable goods orders rose 0.8 percent in June.

New orders for transportation equipment leaped 8.9 percent. Orders for aircraft and parts were sharply higher, with nondefense planes soaring 66.1 percent and those for defense up 16.9 percent. Motor vehicle orders edged up 0.2 percent.

Among other gainers were computers, up 9.1 percent, and electrical equipment and appliances, up 2.8 percent.

Core capital orders -- those for nondefense capital goods excluding aircraft -- rose 0.9 percent after falling the previous two months.

Inventories rose 0.4 percent to $402.3 billion, their highest level since the data series was first published in 1992, the department noted.