New orders for manufactured durable goods, the items designed to last at least three years, plunged 10.2% in January as demand sank for transportation items.
Durable goods orders fell by $23.6 billion to $207.2 billion last month, according to data from the Census Bureau that was released Friday. The decline followed three straight monthly increases, including a 2.5% gain in December.
Excluding transportation, orders rose 0.6% in January. Economists surveyed by
were looking for a 2% drop in overall durable orders and a 0.5% advance taking out the transportation component.
Nondefense new orders for capital goods fell $17.8 billion, or 20%, to $71.6 billion last month. Transportation equipment had the largest decline, falling $24.4 billion, or 31.2%, to $54 billion. The decrease was the largest since July 2000.