Orders for U.S. durable goods posted the biggest gain in four months in July. The Commerce Department reported today that orders for durable goods rose 1.7% in July from the previous month -lifted by stronger demand for goods including airplanes, machinery and communications equipment.

The increase -the largest since March -followed a 1.1% advance in June. The showing in July was stronger than the 1% rise that some economists were forecasting.

Orders for all transportation equipment rose by 5.6% in July, the biggest gain since February, mostly reflecting stronger demand for airplanes. In June, transportation orders rose by 4.7%.

Excluding orders for transportation equipment, bookings for all other goods nudged up by 0.1% in July, an improvement from the 0.3% decline in June. Orders for machinery in July increased by 2.1%, up from a 1.1% rise the month before.

For communications equipment, orders rose by 5.1% in July, compared with a 4.4% drop in June. Orders for electrical equipment and household appliances increased by 5% in July, a turnaround from the 5.5% decline recorded for June.

Orders for non-defence capital goods jumped by 9% in July. That was the largest rise since July 2002 and followed a 1.1% advance in June.

There were some soft spots: orders for automobiles dropped by 5.3% in July, the largest decline in nearly a year. Orders for computers and fabricated metal products also showed declines.