US durable-goods orders surge

New orders for US durable goods jumped in July, but a second consecutive month of declines in a measure of planned business spending pointed to a slowing growth trend in the factory sector. The Commerce Department reported that orders for durable goods—expensive manufactured items expected to last at least three years—surged 4.2 percent last month on strong demand for civilian aircraft. It was the biggest monthly increase since December, and it followed a 1.6 percent gain in June. July’s gain was powered by a 14.1 percent jump in transportation equipment as demand for civilian aircraft surged 53.9 percent. Boeing received orders for 260 aircraft, up from 24 in June. The aircraft jump was complemented by a 12.8 percent increase in motor-vehicle orders, the biggest gain in a year. Excluding transportation items, durable-goods orders fell 0.4 percent, dropping for the second consecutive month. Non-defense capital goods orders excluding aircraft—a closely watched gauge of business spending plans—fell 3.4 percent after a 2.7 percent drop in June. The mixed report suggested a cooling in the growth pace in manufacturing, a sector that has powered the economy’s recovery from the 2007-2009 recession.