Durable goods orders surge

Latest sign recession is over

Led by a huge jump in transportation/aircraft orders, orders for durable goods jumped 4.9% in July, almost double the forecast. Excluding the jump in transportation, orders were still up a solid 0.8%.

Orders are now up in three of the past four months, signaling that production for goods designed to last at least three years is headed higher. The only soft spot in the volatile report was a small decline in nondefense capital goods ex-aircraft, which is viewed as a proxy for capital spending. Orders in the prior two months, however, were up sharply.