Demand for U.S. durable goods rebounded in August after two straight months of declines, while a key measure of business investment posted another gain in a sign of resilience in the manufacturing sector.
Orders for durable goods—ranging from computers to aircraft—increased by 2.9 percent last month, the Commerce Department’s Census Bureau reported on Sept. 25.
Transportation equipment led the rise, climbing 7.9 percent as both defense aircraft orders (+50.1 percent) and nondefense aircraft (+21.6 percent) surged. Excluding transportation, new orders rose by a more modest 0.4 percent.
Nondefense capital goods orders excluding aircraft, a closely watched proxy for business spending on equipment, increased by 0.6 percent in August. July’s reading was revised down to a 0.8 percent gain from the 1 percent previously reported. Economists polled by Reuters had expected a 0.1 percent decline in August in the measure, commonly known as core capital goods orders, which reflect business investment….