Better-than-expected gain in durable goods orders encouraged Wall Street investors

During July, a considerable increase was noticed in big-ticket orders for the US factories. It indicates continued progress in export sales and a boost to business investment that has been decreasing in recessive economic conditions in the US for the past many months.

However, some economists seem worry as they believe that increasing economic weakness overseas and a rebound in the value of the dollar can become the cause to end this export boom till the end of this year.

Strategic Business

On Wednesday, the Commerce Department reported that there was a 1.3 percent increase in durable goods orders in last month and it was far above than 0.1 percent that Wall Street was expecting.

The better-than-expected gain in durable goods orders encouraged the Wall Street investors and the Dow Jones industrial average increased to 89.64 points and closed at 11,502.51.

Orders for commercial aircrafts had fallen sharply in June, but in July there was huge rebound in these orders that helped to strengthen the last month figures. However, aside from commercial aircraft category, there was a considerable growth in other categories that showed American companies were reaping the benefit of a boom in export that was mainly due to the falling value of the dollar earlier this year.

Some economists concerned over how long the boom in export would last as weaker economic conditions can be predicted in Japan, Europe and other big overseas markets.

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