Durable Orders Fall 2.4% in April

The Commerce Department reported Wednesday that orders for durable goods declined by 2.4% in April, the most in seven months on fewer orders for vehicles and business equipment.

A fall in orders for durable goods, which are manufactured goods expected to last at least three years, would eventually decrease the amount of goods produced by U.S. factories for shipment by truck.

The decrease to $168.9 billion followed a revised increase of 1.4% in March, Commerce said. Excluding transportation equipment, orders fell 1.2%, after rising 1.1%.

Economists had expected durable goods orders to fall 1% to $171.7 billion, Bloomberg reported. A decline was expected because manufacturers have been waiting for stronger consumer and business spending before they expand production.

The April decline was the largest since a 4.6% fall in September.

Orders for transportation equipment fell 5.4% after increasing 2.1% in March. Bookings for motor vehicles and parts fell 3% after a 1.6% decrease.

Commerce also said orders for non-defense capital goods excluding aircraft, which are viewed as a proxy for future business investment, fell 3% last month.

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