The Labor Department reported that orders for durable goods orders increased 1.7% in August, which was up for the second month, reflecting a rebound in aircraft sector.
According to the Labor Department, the increase in July and August indicates that business investment strengthened again. Both months were heavily affected by the change in commercial aircraft orders, which increased 71.1% in July and rose 44.8% in August.
Core capital-goods orders, which is a key measure of business investment, increased 0.9% in August after an upwardly revised 1.1% gain in July, according to the Commerce Department. The increase in core capital-goods orders was more than the previous expectation, which is 0.3% increase in August.
In addition, orders excluding transportation increased 0.2% last month following a 0.8% rise in July. Demand for machinery increased 0.3% in August, and orders for autos and auto parts were up 1.5% after dropping 2.1% in July.
In April-June quarter, GDP, which measures the overall economy, increased 3%, and analysts expect that in July-September quarter, GDP will likely be slow, partly due to the influence of hurricanes Irma and Harvey.