Durable goods orders up 4% in July

A surge in demand for autos and aircraft drove orders for long-lasting manufactured goods higher in July, easing fears that the economy might be on the verge of another recession.

The auto-industry rebound helped offset a decline in orders for most other factory goods.

Overall orders for durable goods rose 4 percent last month, the Commerce Department said Wednesday.

Retail sales and industrial production also held up well last month, said David Resler, chief U.S. economist at Nomura Securities.

The data did offer a cautionary signal: A key category that tracks business investment plans fell 1.5 percent, the biggest drop in six months. Orders in all other major categories dropped.