U.S. durable goods orders came in much stronger than expected today, down just 0.6%.

BMO Nesbitt Burns says that markets were looking for a much larger setback from the 8.6% run-up in July, “and the firmness in orders will help dampen concerns over a double dip. Excluding transportation, the news was a little less buoyant, but still generally positive”.

Shipments also retreated last month (-1.7%) after a solid gain in July (+3.3%), notes BMO. The backlog of unfilled orders managed to climb slightly for the second month in a row, but is still down 5.7% y/y.

RBC Financial Group economists agree that the news was positive today, saying, “For recovery to take a stronger hold in the United States, businesses will have to return from a deep freeze and start spending again. By that we mean hiring workers and increasing capital expenditures. The news on that score today was encouraging.”

As well as the orders data, jobless claims for last week fell to 406,000 from 430,000 the previous week.

“Support from consumers should remain in place long enough to allow the U.S. business community to get fully back on its feet – without any further rate cuts by the Fed,” concludes RBC.

“Both orders and jobless claims were better than expected and should help soothe the market’s worst fears over the U.S. economy, at least for the time being,” says BMO.