US durable goods orders surge 22.6 percent in July but outside transportation, orders weak

Industrials Associated Press

In this photo taken Aug. 21, 2014, Orestes Perez, right, and his niece Yanuska Perez, check a 2013 Ford Fusion SE at a local dealership in Hialeah, Fla. The Commerce Department reports on business orders for durable goods in July on Tuesday, Aug. 26, ... 2014. (AP Photo/Alan Diaz) (The Associated Press)

Business orders for long-lasting manufactured goods shot up by the largest amount on record in July but much of the strength came from a huge surge in demand for commercial aircraft. Outside of transportation, orders actually fell.

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The Commerce Department says orders for durable goods rose 22.6 percent in July on a seasonally adjusted basis, the largest one-month gain on record. The strength came from a 318 percent increase in orders for civilian aircraft which helped lift orders for transportation equipment by a record 74.2 percent.

But excluding transportation, orders fell 0.8 percent, and a key category that serves as a proxy for business investment plans dropped 0.5 percent, but this dip came after a sizable 5.4 percent rise in the previous month.