Aircraft and autos drive up demand for U.S. factory goods
The semblance of promising news buoyed the stock market in morning trading.
In the largest increase since March, overall orders for so-called durable goods -- products expected to last at least three years -- rose to $201.5 billion.
Demand for vehicles and their parts jumped 11.5%, the largest run-up in eight years, as Japan’s recovery from the March earthquake smoothed out kinks in the production chain.
With American Airlines requesting 100 new Boeing 737 planes, nondefense aircraft orders soared 43.4%.
But, excluding the brisk pace of the transportation sector, orders rose just 0.7%. New orders for military aircraft and parts slumped more than 6% and machinery orders were down 1.5%.
-- Tiffany Hsu
Photo: A 2011 Ford Escape compact SUV on the showroom floor. Demand for cars and car parts jumped 11.5% in July from the month before. Credit: Charles Krupa / Associated Press