US big ticket items beat forecast

Orders for transport goods fell in April

Orders for US durable goods fell less than forecast in April, a signal that the economy is recovering.

Orders for big ticket items edged 0.5% lower last month, largely due to falls in auto and airline orders, figures from the Commerce Department showed.

Analysts had expected a 1.5% drop. Excluding the transport sector, orders were 2.5% higher - a nine-month high.

Despite a slowdown in domestic demand, analysts say the US is seeing a growth in exports thanks to the weaker dollar.

As the greenback weakens it makes goods priced in dollars more attractive to overseas buyers.

"The durable goods data fits into the perception that the economy is not as weak as had been widely feared," said Michael Darda, head economist at MKM partners.

Demand for transport goods fell 8%, with commercial aircraft dropping 24.4% and vehicle orders down 3.3%.

In contrast, primary metals orders added 2.8% and machinery orders were 4.2% stronger.

Orders of electrical equipment and appliances were nearly 28% up, but this came after a big drop in March.