WASHINGTON, Nov 26 (Reuters) - New orders for long-lasting manufactured goods plummeted in October as demand weakened across nearly every major sector and shipments faltered again, the Commerce Department reported on Wednesday. Orders for durable goods that are intended to last three years or more fell 6.2 percent, more than twice the 3 percent decline that Wall Street economists had forecast, after declines of 0.2 percent in September and 5.5 percent in August. The October drop was the sharpest since an 8.3 percent plunge in October 2006. Orders for nearly every category of durable goods declined, including drops of 12.6 percent for primary metals, 6.8 percent for machinery and 11.1 percent for transportation equipment. Orders for non-defense capital goods excluding aircraft that are taken as a proxy for businesses' investment intentions fell 4 percent in October after decreasing 3.3 percent in September. Shipments of finished goods also weakened in October, dropping by 2.4 percent after a 0.2 percent decline in September, in a signal that hiring at U.S. manufacturers are likely to keep dropping as factory output slows. (Reporting by Glenn Somerville, editing by Tom Hals)

Source