US durable goods orders soar on demand for motor vehicles

Orders for goods made to last more than three years nearly doubled economists' forecasts for last month, led by a sharp jump in those for motor vehicles and parts.

According to the Department of Commerce, in seasonally adjusted terms durable goods orders surged at a month-on-month pace of 11.2% to reach $230.7bn (Barclays: 4.8%).

Orders for transport equipment soared by 35.6% against June to reach $74.74bn, paced by a 21.9% jump in those for motor vehicles and parts to $64.23bn.

Defence aircraft and parts also registered a sharp increase, rising by 77.1% to $4.67bn.

On the non-defence side of the equation, orders for aircraft and parts dropped by $5.8bn although that was less than the -$10.5bn seen in June.

Core capital goods orders meanwhile were reported at up at a month-on-month clip of 1.9% following a rise of 4.3% in June.