NEW YORK (CNNMoney.com) -
Orders for durable goods surged in October, the government said Tuesday, exceeding Wall Street's forecast for demand for big-ticket items.
The Census Bureau reported that new durable goods orders rose 3.4 percent in the month, compared with a revised 2 percent decline reported in September. Economists surveyed by Briefing.com had forecast that orders would rise just 1.5 percent in the month.
But stripping out the volatile transportation sector, orders increased just 0.3 percent in October. Economists had looked for a 1 percent rise outside of transportation.
New orders for U.S.-made durable goods jumped unexpectedly last month as aircraft orders bounced back after plunging in September, the government said.
Transportation orders surged 11.4 percent as civilian aircraft orders spiked 50.4 percent. In September, orders for non-defense aircraft had plunged 41.6 percent due to a strike at Boeing by its production workers.
The report also showed a 1.3 percent rise in orders for non-defense capital goods, excluding aircraft, which is often used as a gauge for future business spending.
But the jump in orders was not broad-based as demand for computers and electronics fell 1.3 percent while motor vehicle orders dropped 2.2 percent as U.S. auto manufacturers felt growing pressures on their business.
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