Durable goods orders rise 0.3 percent in July; business spending plummets as recovery cools

Durable goods orders rise 0.3 percent in July

WASHINGTON — Orders to U.S. factories for big-ticket manufactured goods increased slightly in July, but businesses spent less as the economic recovery lost momentum.

The Commerce Department says demand for durable goods rose 0.3 percent last month. The overall increase was driven by a 75.9 percent increase in orders for commercial airplanes.

Without the volatile transportation sector, orders dropped 3.8 percent — the steepest decline since January. Businesses spent less on equipment and machines. Orders for capital goods were down 8.0 percent. Machinery and computers were especially hard-hit.

High unemployment and the end of government stimulus programs are slowing the recovery.