U.S. Durable Goods Orders Jump 1.8% In August, Much More Than Expected

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New orders for U.S. manufactured durable goods increased by much more than expected in the month of August, according to a report released the Commerce Department on Monday.

The report said durable goods orders jumped by 1.8 percent in August after rising by a revised 0.5 percent in July.

Economists had expected durable goods orders to increase by 0.6 percent compared to the 0.1 percent dip that had been reported for the previous month.

The bigger than expected increase in durable goods orders was largely due to a spike in orders for transportation equipment, which shot up by 5.5 percent in August after dipping by 0.4 percent in July.

Orders for non-defense aircraft and parts led the way higher, soaring by 77.9 percent in August after plunging by 36.3 percent in July.

Excluding the rebound in orders for transportation equipment, durable goods orders edged up by 0.2 percent in August after climbing by 0.8 percent in July.

Notable increases in orders for fabricated metal products, computers and electronic products and electrical equipment, appliances and components were partly offset by a drop in orders for machinery.

The report said new orders for non-defense capital goods excluding aircraft, a closely watched indicator of business spending, climbed by 0.5 percent in August after rising by 0.3 percent in July.

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