Here’s some positive economic news.
Orders for durable goods, items meant to last three years or more, rose strongly last month after an upwardly revised 1.3% gain in June, the Commerce Department said. Analysts were expecting durables orders to remain unchanged from the previous month.
Transportation orders rose 3.1% in July, largest gain since February, on a 28% rise in civilian aircraft orders. That followed a 21.3% drop in aircraft orders in June.
Even when volatile transportation orders were stripped out, demand for durables rose 0.7%. Analysts had expected a 0.5% drop in durables orders excluding transportation.
Non-defense capital goods orders excluding aircraft, seen as a barometer of business spending, jumped 2.6%, steepest gain since April. Analysts were expecting that category to decline by 0.1%.
Why these numbers are important is because this means that people think that the economy is going to pick up in the near future – why else buy something that is going to last a couple of years if you don’t think you’re going to be able to pay for it or make money off of it?
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