U.S. Durable Goods Orders Shaky

American orders for durable goods climbed 4.2% from June to July, thanks to a 54% surge for aircraft and 13% for motor vehicles and parts, according to the Dept. of Commerce.

But when the volatile transportation sector is stripped out, orders slid 0.4% last month. Orders for capital goods excluding defense and aircraft considered a proxy for future business investment dropped 3.4%.

The disappointing orders data could presage a slower manufacturing pace, according to economists. But they add that the weak figures bolster the case for the Federal Reserve to intervene soon to buoy the economy.