New orders for US durable goods tumbled by a larger-than-expected 4.9 per cent in July, the biggest drop since January 2004, a government report showed today.
Orders excluding volatile transportation equipment also slipped much more than expected, declining 3.2 per cent.
It was the first decrease in orders for big-ticket items in four months, and the first fall in three months for orders when transportation equipment are stripped out.
Orders fell widely: computers and electronic product orders slipped 5.9 per cent, machinery orders dropped 6.2 per cent, and electrical equipment orders eased 2 per cent.
Demand for transportation equipment tumbled 8.6 per cent, despite a 1.5 per cent rise in motor vehicle orders. Civilian aircraft and parts orders fell 20.2 per cent.
Non-defence capital goods orders excluding aircraft, viewed as a proxy for business spending, slipped 3.7 per cent, the largest drop since October 2004.
Orders for defence-related capital goods dropped 16.6 percent. Excluding defence, durable goods orders were down 4.5 per cent.