New-home sales in the United States soared in April, marking the biggest climb in 14 years, according to a report that showed declining inventories.

Separately, demand for U.S. durable goods rose mildly in April, according to a government report Thursday that also showed capital spending by businesses grew again.

Sales of single-family homes increased for the first time in four months, rising by 16% to a seasonally adjusted annual rate of 981,000, the U.S. Commerce Department said today. March new-home sales decreased 1.4% to an annual rate to 844,000, a figure revised down from an earlier estimated 858,000. Sales fell 3.8% in February and 13% in January. Year-to-year, new-home sales were 11% lower than the level in April 2006.

The average price of a home last month decreased to US$299,100, down from US$324,700 in March and US$310,300 in April 2006. The median price was US$229,100, lower than US$257,600 in March and US$257,000 in April 2006.

The surge in April sales was a surprise. Economists had called for a 0.2% increase in April sales to an 860,000 annual rate. It was the biggest increase since 16.4% in April 1993.

Separately, orders for durable goods increased by 0.6% last month to a seasonally adjusted US$217.86 billion, the U.S. Commerce Department said. Durables, which are goods designed to last at least three years, rose 5% in March, revised from a previously estimated 3.7% increase.

A key barometer of business equipment spending — orders for nondefense capital goods excluding aircraft — climbed by 1.2%, after increasing 4.4% in March. Year-to-year, orders were down 1.3%. April shipments for nondefense capital goods excluding aircraft increased by 0.7%, after rising 1.5% in March; the shipments are used in calculating gross domestic product.

But the 0.6% increase in overall durable-goods orders came short of expectations on Wall Street. Economists had forecast durables 1% higher in April.

Meanwhile, the number of U.S. workers filing new claims for jobless benefits increased as expected last week, breaking a string of five-straight declines.

Still, claims remain at levels consistent with solid monthly job growth, as evidenced by another drop in the four-week average to its lowest point in 15 months.

Jobless claims rose 15,000 to 311,000 on a seasonally-adjusted basis in the week ended May 19, the Labor Department said Thursday. Claims for the May 12 week were revised to 296,000 from 293,000.

The four-week average slid by 3,500 to 302,750, the lowest reading since Feb. 25, 2006. Levels around 300,000 are usually consistent with strong monthly job growth.