Durable goods orders surged 22.6% in July, associated with a massive increase in aircraft orders. 

The report showed that transportation orders were up 74.2%, but excluding transportation, new orders decreased 0.8%, though this compares with a revised June number that showed orders ex-transport rose 3% instead of a previously reported 0.8%. 

In a note to clients ahead of the report, Ethan Harris at Bank of America Merrill Lynch said a large number of orders from the London Farnborough Airshow drove the surge in aircraft orders. In July, Boeing reported orders for 324 aircraft, up from 109 in June. 

Excluding defense, new orders were up 24.9% in July, and non-defense capital goods orders excluding aircraft fell 0.5% in July. 

This is the largest increase in the headline reading for durable orders ever, topping the previous record of a 16.6% increase in June 2000. 

Following the report, Ian Shepherdson at Pantheon Macro said: "In one line: Headline is wild, details more encouraging than -0.8% ex-transport number suggests."

Expectations were for orders to increase 8% in July.

Paul Dales said the 1.5% increase in non-transport, non-defense capital goods orders suggested that business investment in equipment was "on course to rise rapidly in the third quarter."

There was a massive range of expectations for this report, with some economists expecting this to push the headline increase in durable goods orders as high as 30%.  

The June durable goods report was also revised up to a 2.7% increase from a previous reading of 0.7%. 

Bloomberg Economist Michael McDonough tweeted the following chart, which shows the massive rise in orders.

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