Orders for goods expected to last more than three years increased 4.9% in July, beating analyst expectations of a 3% gain. At the same time, the annual rate of sales of new US homes rose 9.6% last month, also ahead of market targets. This was the biggest rise in sales of new houses since September last year. The increase in durable goods orders was led by the commercial aviation sector, which pushed transportation equipment orders up 18%. The increase in demand for civilian aircraft was thanks primarily to Boeing, which in July saw its largest increase in monthly orders since August last year.
New orders excluding transportation items rose 0.8%, which was the third rise in the past four months, and followed a revised 1.3% fall in June. Transportation orders were further lifted by increased demand for US built cars thanks to the government’s cash for clunkers scrappage scheme. Sales of new US homes rose to a seasonally adjusted annual rate of 433,000 in July, up from 395,000 in June. Although this was a 9.6% rise from the month before, sales were still 13% lower than July 2008. Conference Board Consumer Confidence Index rose by more than expected this month, while a separate study said the rate of decline in US house prices slowed in July.