WASHINGTON (AP) – Orders for long-lasting manufactured goods sank 6.8 percent in July, the biggest fall in nearly three years, led by a drop in the volatile category of civilian aircraft. But a gauge of business investment rose last month.
The Commerce Department said Friday that orders for durable goods – items meant to last at least three years – reversed a sharp gain in such orders in June.
The numbers were warped by a 19 percent drop in orders for transportation equipment, a category that bounces wildly from month to month. Specifically, orders for civilian aircraft tumbled 70.7 percent in July – payback for a 129.3 percent surge in June.
Excluding transportation, orders rose a solid 0.5 percent last month.
Economists had expected orders to drop after the big gain in June. Overall, American industry continues to look mostly solid. Manufacturers have rebounded from a slump in late 2015 and early 2016 caused by cutbacks in the energy industry and a strong dollar that makes U.S. goods costlier overseas.