New orders for goods that last more than three years fell in April at the fastest pace in a year and a half, the Commerce Department said today.
New orders for durable goods fell 2.9 per cent last month, after two months of large gains.
Durable goods rose a revised 5.7 per cent in March, following an earlier estimate orders had risen 5 per cent. In February, orders rose 3.9 per cent.
April's decline was sharper than expected. Economists polled by CBS MarketWatch had forecast a 0.6 per cent drop.
"The April data should in no way be considered soft," said economist Ian Sheperdson of High Frequency Economics, noting that "historic experience shows that big increases in orders are usually followed by hefty declines."
Orders for durable goods, excluding transportation equipment, fell 2.1 per cent in the month, marking the first drop in five months.
And orders for durable goods, excluding defense-related items, fell 2.4 per cent, the first decline in three months.
Inventories rose 0.5 per cent in April, the fifth consecutive monthly increase. Shipments fell 0.8 per cent last month, while unfilled orders rose 0.6 per cent.
The decline in orders was broad-based. Non-defense capital goods fell 2.7 per cent in the month after a 6.0 percent gain in March.
Primary metals orders fell 5.3 per cent in April after rising 8.5 per cent in the prior month.
Machinery orders fell 4.9 per cent in the month after rising 5.1 per cent in March.