Reflecting a continued plunge by orders for transportation equipment, the Commerce Department released a report on Tuesday showing a steep drop by new orders for U.S. manufactured durable goods in the month of July.
The Commerce Department said durable goods orders slumped by 2.8 percent in July after plummeting by a revised 9.4 percent in June.
The decrease was much smaller than anticipated, however, as economists had expected durable goods orders to tumble by 4.0 percent compared to the 9.3 percent plunge originally reported for the previous month.
The steep decline by durable goods orders came as orders for transportation equipment dove by 9.7 percent in July after plunging by 22.7 percent in June.
Orders for non-defense aircraft and parts led the way lower once again, plummeting by 32.7 percent in July following a 52.7 percent nosedive in the previous month.
Excluding the sharp drop in orders for transportation equipment, durable goods orders jumped by 1.1 percent in July after rising by 0.3 percent in June.
The much stronger-than-expected growth by ex-transportation orders partly reflected notable increases by orders for electrical equipment, appliances and components, machinery and primary metals.
The report also said orders for non-defense capital goods excluding aircraft, a key indicator of business spending, shot up by 1.1 percent in July after falling by 0.6 percent in June.
Shipments in the same category, which is the source data for equipment investment in GDP, climbed by 0.7 percent in July after rising by 0.4 percent in June.