WASHINGTON (Reuters) – Orders for long-lasting U.S. manufactured goods fell more than expected in January amid a sharp drop in bookings for commercial aircraft, while the picture for business investment on equipment was mixed.
The Commerce Department’s Census Bureau said on Tuesday that orders for durable goods, items ranging from toasters to aircraft meant to last three years or more, tumbled 6.1% last month. Data for December was revised lower to show orders falling 0.3% instead of being unchanged as previously reported.
Economists polled by Reuters had forecast durable goods orders tumbling 4.5%.
But manufacturing, which accounts for 10.3% of the U.S. economy, appears to be regaining its footing after production eased slightly in 2023 amid 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022. A survey from the Institute for Supply Management early this month showed its manufacturing PMI contracting marginally in January.
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, edged up 0.1% after a revised 0.6% decline in the prior month. These so-called core capital goods orders were previously reported to have gained 0.2% in December
Business spending on equipment rebounded modestly in the fourth quarter after contracting in the July-September period.
The economy grew at a 3.3% annualized rate last quarter after expanding at a 4.9% pace in the third quarter.
(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)
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