US durable goods orders beat expectations in July

Orders for US durable goods grew more than expected last month, figures released on Wednesday showed.

According to the Commerce Department, orders for long-lasting goods rose 2% in July compared with the 0.6% reading analysts had forecast.

Excluding transportation, however, orders rose 0.6%, while orders for core capital goods rose 2.2% to reach their highest level in 13 months.

Business investment declined 3.8% year-on-year, while shipments of core capital goods, a gauge used to determine quarterly economic growth, rose 0.6% last month.

“Today’s durable goods figure makes good reading for the world’s largest economy, but, after a chaotic start to the week for global markets, this jump in orders may not be enough to alter the Federal Reserve’s likely plan to delay an interest rate rise a little longer,” said Dennis de Jong, managing director at UFX.com.

“Fed Chair Janet Yellen will now be keeping a close eye on the aftershocks of China’s economic rumble before rushing into a rate hike but, if markets regain stability, a rise could still happen before 2016.”