Orders for U.S. durable goods orders rose much more than expected in August in a broad increase that included higher capital spending.

Demand for goods designed to last at least three years rose a seasonally adjusted 3.3% to US$210.86 billion, the U.S. Commerce Department said today.

Economists had forecast for durable goods orders to climb by 0.5% in August. The 3.3% overall increase marked the fourth climb in five months and followed a revised plunge of 5.3% in July. July orders were originally seen dropping 4.9%.

Orders for non-defense capital goods excluding aircraft, a key measure of business spending increased 3.6% during August. Orders fell 3.3% in July.

The report showed increases in nearly all categories of goods.

Capital-goods orders increased by 3.7% after falling 8.2% in July. Non-defense capital goods — items meant to last 10 years or more — rose by 4.3% last month. Defense-related capital goods orders slipped by 1.6%. Excluding defense items, all other durables would have gone up 3.6% last month; ex-defense orders fell 4.9% in July.

Durable-goods inventories of manufacturers decreased 0.2% last month. Unfilled orders rose 1.7%. Shipments climbed by 1.7%.

Today’s report didn’t include the effects from hurricane Katrina, as it struck land at the very end of the month, on August 29.