U.S. durable goods orders fell 0.7% in October following 1.5% drop in September; orders for core capital goods dropped 1.8%, the largest decline since January
November 23, 2011
– Business orders for long-lasting manufactured goods fell for a second straight month in October.
While much of the weakness came from a big drop in demand for commercial aircraft, a key category that tracks business investment spending fell by the largest amount since January.
The Commerce Department says that orders for durable goods fell 0.7 percent in October following a September decline of 1.5 percent. Orders for core capital goods, considered a good proxy for business investment spending, dropped 1.8 percent, the biggest decline since a 4.8 percent fall in January.
Manufacturing has been one of the strongest sectors in the economy in this sub-par recovery, but this sector slowed this year as consumer demand faltered and auto factories had trouble getting parts following the March natural disasters in Japan.
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