Transcripts

Durable Goods Do Some Good for the Economic Picture

JEFF YASTINE: The struggling U.S. economy is showing signs of life. A report out today suggests American businesses are increasing their spending as they plan for future growth. According to the Commerce Department, orders for long lasting, big ticket items jumped by 0.8 of a percentage point last month. That was a big improvement from May's nearly flat pace. Economist Julia Coronado at Barclays Capital says the pickup in durable goods orders could lead to a pickup in hiring.

JULIA CORONADO, SR. ECONOMIST, BARCLAYS CAPITAL: This is business investment spending, so this is significant because durable goods orders is one of the best leading indicators for private employment. So if we're seeing durable goods orders pickup, we may see the employment situation improve in the third quarter.

YASTINE: The Commerce Department also reported that sales of new homes fell a smaller than expected 0.6 of a percentage point last month.