Demand for big-ticket items in the U.S. dropped less than economists were expecting in March, according to the U.S. Commerce Department on Friday.
Durable goods orders excluding transportation posted a drop of 0.6% despite forecasts for a 1.2% decline. Total new orders fell by 0.8% against expectations of a 1.5% decline.
February's increase in the ex-transport figure was downwardly revised to a 2.0% gain from an initially reported 3.9% increase; while February's total new orders were revised to +2.1% from an originally reported 3.4% jump.
Excluding defence, orders were down 0.6% following a revised 0.2% increase in the previous month.
Capital goods orders including defense dropped 0.8% in March, compared to an 8.9% climb in the prior month.
Non-defence capital goods excluding aircraft advanced 1.5% in the month following a revised 4.3% increase in the previous month.
The shipments component showed a 1.7% decline compared to February's 0.8% decrease.
Excluding transportation, shipments fell 2.4% after the prior month's 1.1% revised decline, while shipments excluding defence posted a 1.8% decrease following a 1.9% revised contraction in February.
The durable goods report is a key indicator of the national manufacturing sector. The index looks at 'hard' goods only, or products that have a life expectancy of at least three years, such as autos, computers and machinery, aircraft, and communication equipment.
By Megan Ainscow and edited by Stephen Huebl
©CEP News Ltd. 2009
