US durable goods orders rise in June as businesses accelerate spending

Durable goods orders in the United States rose a seasonally adjusted 3.4% in June from a month earlier, according to the US Commerce Department on Monday. The increase marked the first since March. Economists had predicted a 2.7% rise.

The upbeat data indicates that US businesses are slowly starting to accelerate their spending, boosting orders for long-lasting manufactured goods and indicating they may be shaking off their early-year slowdown.

Excluding transportation, new orders rose 0.8%, the largest increase since August 2014. Excluding defense orders, another volatile category, orders rose 3.8%.

US Treasury yields rose following better-than-expected durable goods orders, helping boost the dollar briefly. Gains in the bond market and the dollar were subdued as markets look ahead to the two-day Federal Reserve meeting that kicks off on Tuesday and concludes on Wednesday with a statement.

Investors hope the FOMC could shed light on whether the central bank is getting ready to raise interest rates in September, which is what most are expecting.

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