WASHINGTON (MarketWatch) — Orders for U.S.-made durable goods fell 3.3% in October — the largest decline since January of 2009 — as transportation orders declined, the Commerce Department reported Wednesday.
Excluding transportation, new orders fell 2.7% in October – the largest decline since March of 2009.
Economists polled by MarketWatch had expected a decline of 0.2% for overall durable-goods orders. Durable goods are expensive items designed to last three years or longer, and while the data is volatile from month to month, analysts see a trend in orders as a valuable leading economic indicator.
Core durable-goods orders, which are orders for capital goods excluding defense and aircraft, fell 4.5% in October after a 1.9% rise in September.
Shipments of durable goods fell 0.9% in October, while inventories rose 0.4%. Durable-goods orders in September were revised higher to a gain of 5%, compared with a prior estimate of a 3.5% increase.
Details
Orders for transportation equipment fell 5.2% in October, following a gain of 16.5% in September.
Orders for computers and electronic products fell 7.7%, with orders for communications equipment down 12.3%, the largest decline since September of 2008.
Orders for machinery fell 3.9% in October after rising 3.5% in September.
Shipments of core capital-equipment goods, a direct input into gross domestic product calculations, fell 1.5% in October after rising 1% in September.
