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To: UnBelievable who wrote (6304)	7/27/2000 9:07:07 AM
From: UnBelievable	Respond to of 436258

US Durable Goods Orders +10.0% In June; Survey Unchanged June Durables Orders Ex-Transport +0.8%; Ex-Defense +3.9% May Durable Goods Orders Revised To +7.0% From +6.1% US Durable Goods Orders Jump Sharply In June =========================================================== Durable Goods Orders June May !Surprise: Yes ! Total Durable Goods 10.0% 7.0%r !Trend: Demand ! Ex-Transportation 0.8% 7.1%r ! Still Growing! Excluding Defense 3.9% 6.4%r !Survey: UNCH ! =========================================================== WASHINGTON (Dow Jones)--Demand for big-ticket items in the U.S. jumped sharply again in June, posting the biggest gain in nearly a decade and raising fears that the economy remains defiantly strong in the face of continued government efforts to slow growth. A sharp increase in aircraft orders helped boost the overall level of durable goods orders by a surprisingly sharp 10.0% in June, the Commerce Department said Thursday, to a seasonally adjusted level of about $243.16 billion. The largest increase since July 1991 came on top of an already-strong 7.0% gain in May, which had been previously reported as 6.1%. With June's rise, Commerce said demand for durable goods has advanced in seven of the last eight months, and future demand also appears to be strong. Excluding the heavily weighted transportation sector, orders rose 0.8% last month, Commerce said, while orders outside of the defense-related sector rose an even stronger 3.9%. The government's report sharply outpaced Wall Street estimates, which is likely to leave bond and equity markets unsettled in early trading Thursday. A survey of 14 economists by Dow Jones Newswires and CNBC had the June level unchanged, month-to-month. In addition to potentially affecting the markets, the surprisingly strong data may also add to pressure on the central bank to continue its vigilant oversight of the economy. Federal Reserve Chairman Alan Greenspan has said monetary policymakers at the central bank will focus intensely on economic data in the coming weeks before making any decision on interest rates. The Fed has raised rates steadily over the past year, in an effort to slow the U.S. economy to a more sustainable rate. If government statistics point to a resurgance in demand, the central bank may be more likely to consider further hikes, analysts say. Durables orders rose across the board in June, Commerce said. Transportation equipment logged its largest increase on record with a wild 43.0% jump in June, primarily on a surge in orders placed for civilian aircraft. Demand for industrial equipment was also strong, up 1.3%, while primary metals orders rose 1.6% and demand for electronic equipment advanced 0.3%. Shipments of durables rose 1.5% in June, Commerce said, while unfilled orders - a good gauge of future demand - rose a strong 4.7% for the month. Commerce said June's durable goods data will be revised and released August 3. The advance report for July will be posted August 24. -By Jerry Guidera, Dow Jones Newswires, 202 862-9275