Durable goods orders drop again

NEW YORK (CNNMoney.com) -- Demand for big-ticket items fell for the third straight month in October and came in weaker than had been forecast, according to a government report released Wednesday.

Figures from last month bring the decline in orders for items like computers and refrigerators to its longest stretch of weakness in nearly four years.

The Commerce Department reported that orders fell 0.4 percent, compared with a revised 1.4 percent decline in September. Economists had expected orders to be unchanged.

The decline in orders raises worries about how much harm the severe housing slump is starting to inflict on other parts of the economy.

Excluding transportation goods, new orders for durable goods fell 0.7 percent. Excluding defense, new orders decreased 0.9 percent.

Computers and electronics products saw the biggest tumble, down 8.4 percent, or $2.5 billion, to $27.1 billion. The decline was led by communications equipment, which decreased by $1.4 billion.

At the same time, inventories of manufactured durable goods came in at their highest level since the index was first started, rising 0.2 percent, or $0.8 billion, to $314.3 billion.

Non-defense new orders for capital goods fell 3.1 percent to $72.5 billion. Shipments decreased 0.6 percent to $67.6 billion. Defense new orders for capital goods rose 16.1 percent to $9.3 billion.

-- from staff and wire reports