U.S. June Ex-Transportation Durables Orders Drop

" Orders for U.S. durable goods excluding transportation equipment unexpectedly dropped in June for a second month, casting doubt on forecasts that gains in business investment will help sustain the expansion.

Excluding transportation equipment, demand for goods meant to last several years fell 0.5 percent, after a revised 0.2 percent decrease in May, the Commerce Department said today in Washington. Total bookings rose 1.4 percent, led by a jump in orders for commercial aircraft.

Companies may be pulling back as consumer spending slows, offsetting record overseas demand for American goods. Federal Reserve policy makers have said a lack of business investment is a risk for an economy already depressed by the biggest housing slump in 16 years. "

Source: U.S. June Ex-Transportation Durables Orders Drop (Update1) (http://www.bloomberg.com/apps/news?pid=20601087&sid=azHrqiaEjv84&refer=home)