Orders for U.S.-made durable goods slumped 2.6% in December on weaker demand for almost all product except defense-related items, the Commerce Department reported Thursday.
Orders have fallen for fifth straight month. The drop in the fourth quarter has been pronounced.
Excluding the 0.6% increase in transportation goods, orders fell 3.6%.
The decline in December exceeded the expected 2.0% fall forecast by economists surveyed by MarketWatch. See Economic Calendar.
Orders for durable goods fell a revised 3.7% in November, more than double the previous estimate of a 1.5% decline.
In the fourth quarter, durable-goods orders have declined by an average of 4.9% per month.
Economists estimate gross domestic product fell about 5.5% in the fourth quarter. The government will release the data on Friday.
For the year, durable-goods orders were down 5.7%. This is the largest annual decline since 2001.
The December report was weak across the board.
Shipments fell 0.7% in December, and were down 1.4% excluding transportation goods. Inventories rose 0.4% as manufacturers were unable to sell goods.
Unfilled orders fell 1.3%
Details
Orders for nonaircraft nondefense capital goods (the "core") fell 2.8%, while shipments rose 0.9%.
Orders for transportation goods rose 0.6%, led by a 16.4% increase in bookings for defense aircraft. Orders for motor vehicles fell 5.2%. Shipments of transportation goods rose 1.3%.
Orders for computers and electronics (excluding semiconductors) fell 7.2%, including a 4.9% decline in demand for communications equipment. Shipments of electronics (including semiconductors) rose 0.1%.
Orders for machinery fell 5.0%. Shipments rose 2.5%.
Orders for electrical equipment rose 9.4%. Shipments rose 1.5%.
Orders for fabricated metals fell 3.6%. Shipments fell 3.3%.
Orders for primary metals fell 6.9%. Shipments fell 7.4%.
Orders for defense capital goods increased 32.9%. Shipments fell 5.9%.
