Durable goods orders rise
WASHINGTON — Orders for long-lasting U.S. factory goods posted the biggest gain in nearly three years last month, pulled up by a surge in demand for civilian aircraft.
The Commerce Department said Thursday that orders for durable goods — which are meant to last at least three years — climbed 6.5 percent in June, reversing two straight monthly drops.
Spending on durable goods accounts for a small part of American economic output. But changes in durable goods orders often signal where the economy is headed, so forecasters and investors watch the report closely.
While any uptick in orders is good news for the U.S. economy and for American manufacturers, the June numbers aren’t as impressive as they first appear.
The bulk of the increase came from a 131.2 percent surge in orders for civilian aircraft, a category that bounces around wildly from month to month. Excluding orders transportation equipment, which rose 19 percent overall, durable goods orders edged up just 0.2 percent last month.
Moreover, a number that is seen as a harbinger of future business investment — orders for capital goods, excluding military equipment and aircraft — slipped 0.1 percent in June.
On Wall Street Thursday, stock indexes pulled back from their record highs after an afternoon swoon for technology companies helped overshadow another big day for telecoms.
Verizon Communications had its best day in more than eight years after it reported more revenue than analysts expected. Many more customers added wireless phones than Wall Street had forecast. Verizon jumped or 7.7 percent to $47.81. Verizon’s big day follows AT&T’s, which had its biggest move since 2009 on Wednesday after it reported stronger-thanexpected earnings.