U.S. durable goods take dive in July
Surging energy and oil costs led to a sharp decrease in durable goods orders for the month of July. Durable goods orders had been increasing since March. June had previously reflected a 1.9 percent increase. But a report released Wednesday by the US Commerce Department show a startling month-to-month 4.9 percent decrease in July. July was an especially weak month, however, for durable goods such as machinery, computers, communications equipment, electrical equipment, and appliances, and airplanes. Fortunately, for the steel industry, it was a strong month for the steel-driven markets of automobiles, auto parts, and primary metals. Orders for transportation equipment also fell 3.2 percent in July, compared to a 3.6 percent increase in June. Analysts say that despite the ups and downs in bookings from month-to-month, the factory sector is still in pretty good shape and has recovered nicely from the manufacturing recession in 2001. Another Commerce Department report showed that new homes sales shot up to a record in July, showing a month-to-month 6.5 percent increase from June.