Demand for Durable Goods Rise 1.7 % in September

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The demand for durable goods has significantly increased in September this year, the fastest in six months, the United States Commerce Department on Wednesday.

The United States Commerce Department on Wednesday said that the demand for durable goods has significantly increased in September this year -- the fastest in six months.

In a report, the Commerce Department said that new orders foe long-lasting goods, excluding transportation, has increased by 1.7 percent in September 2011 after falling by 0.4 percent in the previous month.

With the sale of durable goods now at its fastest pace, many economists expressed belief that the US economy has already established a solid momentum heading into the fourt quarter of 2011, citing positive results in the housing sector.

Last week, the housing industry reported that new home sales has risen to its five-month high, while mortgage applications also gaining positive results.

"Outside of the volatile transportation sector, the gains in durable goods orders were broad-based and point to a manufacturing sector that continues to expand at a solid rate," said John Ryding, chief economist at RDQ Economics in New York.

The low demand for transportation equipment, which has pulled down the overall order for the sector, dropped by at least 0.8 percent.

Overall, transportation orders fell 7.5 percent, the largest decline since April.

 

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