US durable goods orders rise for first time in 3 months

US durable goods orders, which cover products expected to last at least three years, increased in August, signaling a rebound after two consecutive months of declines.

Official data released Thursday showed orders rose 2.9% month-on-month to $312.1 billion in August, following a 2.7% drop in July, according to revised estimates.

The increase was driven primarily by the transportation equipment sector, where orders jumped 7.9%, or $8.1 billion, to $110.2 billion after two months of declines.

Investors closely watch durable goods data as an indicator of confidence, since consumers are more likely to purchase items such as vehicles or household appliances when economic expectations are positive.