New orders at US factories tumbled by a greater-than-expected 5.6 per cent in January, the biggest decline in more than six years, on a big drop in aircraft orders, figures showed today.
It was the biggest monthly decline in orders since an 8.6 per cent decrease in July 2000, the government said. Analysts polled by Reuters were expecting orders to decline 4.3 per cent.
Stripping out defence goods, orders fell by 5.5 per cent, the largest monthly slide on record.
Transportation orders fell 19 per cent on a 60.2 per cent drop in civilian aircraft orders and a 58.9 pe rcent slide in military aircraft orders. When transportation was stripped out, orders fell 2.9 pe rcent, their largest slide since September.
Durable goods orders were revised down to an 8.7 per cent drop in January, the biggest drop since July 2000.
Orders were down for machinery, computers and electronic products, and cars.
The government's first report last week of the drop in orders for durable goods - big ticket items meant to last three years or more - was a factor in the sharp sell-off in stock markets around the world as investors interpreted weak orders as a sign the US economy is slowing. Commerce initially published the durables orders decline as 7.8 per cent.