The US Commerce Department notes that an increase in durable goods orders helped factories meet predictions.
Durable goods orders increased 5.5 percent, driven by Boeing and its successful showing at the Paris Air Show. Orders for 200 aircraft helped drive the overall new factory orders growth to 2.9 percent, the best increase in over a year.
“There’s tremendous momentum” this year, Boeing’s newly named chief executive, James McNerney, formerly of 3M, said on June 30 in an interview. “That momentum is expected to carry over into 2006.”
Shipments of durable goods decreased $0.3 billion or 0.2 percent to $207.4 billion, unchanged from the previously published 0.2 percent decrease. This followed a 1.4 percent April increase.
New orders for transportation equipment showed the largest increase, $11.3 billion or 21.2 percent to $64.7 billion, due to non-defense aircraft and parts, which increased $11.6 billion.
Wachovia economist Gina Martin echoed Alan Greenspan’s observations about the US economy. “If consumers manage to keep up spending, then that’ll force businesses and especially manufacturers to resume a little bit of growth going into the second half of the year,” she said.
“Like the Fed said last week, the expansion continues to move forward at a relatively steady pace.”
David Utter is a staff writer for Murdok covering technology and business. Email him here.
