Durable Goods Advance in June as U.S. Economy Continues to Grow
By John McCormick
Orders for cars, appliances and other durable goods increased in
June, signaling continued strength in the U.S. economy as
manufacturers continue to deal with shortages in parts and labor
and confront higher material costs.
New orders for products meant to last at least three years
increased 0.8% to a seasonally adjusted $257.6 billion in June as
compared with May, the Commerce Department said Tuesday. Economists
surveyed by The Wall Street Journal had estimated a 2% gain.
Orders increased 3.2% in May from the prior month, a slightly
better reading than the previous estimate of 2.3%. Demand for
durable goods has increased in 13 of the last 14 months.
Low business and retail inventories have translated to increased
demand for manufacturers, but supply-chain issues continue to
constrain production and delay some shipments.
New orders for nondefense capital goods excluding
aircraft--so-called core capital-goods, a closely watched proxy for
business investment--increased 0.5% in June from the previous
month. The prior month such orders also were up 0.5%.
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(END) Dow Jones Newswires
July 27, 2021 08:59 ET (12:59 GMT)
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