A U.S. government report showed demand for expensive goods unexpectedly rose in June, while a barometer of capital spending by businesses increased, a sign of strength for the struggling manufacturing sector.

Meanwhile, U.S. new-home sales fell slightly in June, but the level of demand was higher than projected.

Orders for durable goods climbed 0.8% last month to a seasonally adjusted $215.43 billion, the U.S. Commerce Department said today. Durables are manufactured goods designed to last at least three years.

The report was better than Wall Street expected; economists had forecast a drop of 0.5% for June.

Meanwhile, a barometer of business equipment spending — orders for non-defense capital goods excluding aircraft — increased in June by 1.4%, after dipping 0.1% in May.

June shipments for non-defense capital goods excluding aircraft rose by 0.7%, after increasing 0.2% in May; the shipments are used in calculating gross domestic product, which is the broad measure of economic activity in the U.S.

Meanwhile, Sales of single-family homes decreased by 0.6% last month to a seasonally adjusted annual rate of 530,000, the U.S. Commerce Department said.

May new-home sales fell 1.7% to an annual rate to 533,000; originally, the government said May sales fell by 2.5% to 512,000. Economists had forecast a June sales rate of 505,000. Year over year, new-home sales were 33.2% lower than the level in June 2007.

The decrease in June sales was the fifth in six months.

The median price of a new home decreased by 2% to US$230,900 in June from US$235,500 in June 2007. The average price fell by 2.6% to US$298,600 from US$306,500 a year earlier.