New orders for durable goods rose in June, paced by transportation equipment.
Orders climbed $5 billion, or 1.9 percent, to $272.6 billion, the U.S. Commerce Department said July 27. It was the eighth gain in the past nine months and followed a 0.8 percent rise in May.
Excluding transportation, new orders rose 0.3 percent for the month. Excluding defense, orders increased 0.4 percent.
Transportation equipment gained 5.1 percent to $92.7 billion. The sector has recorded three consecutive monthly increases.
Within the category, orders for defense aircraft and parts soared 81 percent to $9.8 billion.
Orders for motor vehicles and parts rose 1.5 percent to $59.6 billion. The auto industry continues to enjoy strong demand for trucks and SUVs but is coping with a global shortage of semiconductors that is hampering production.
Orders for commercial aircraft declined 2.1 percent to $14.1 billion. Demand for air travel has recovered from COVID-19 lows. Boeing Co. is dealing with quality problems on its 787 Dreamliner while getting the 737 Max back in service in most of the world. The 737 Max had been grounded in 2019 following two fatal crashes, prompting software changes on the plane.
Among other categories, orders for fabricated metal products increased 0.3 percent to $36.9 billion. Orders for machinery slipped 0.2 percent to $38.2 billion. Orders for primary metals slid 1.1 percent to $21.1 billion.
The monthly report is based on a survey of about 3,100 companies.
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