Durable goods orders tumble 2.5%
June orders for long-lasting goods fell more than expected, marking the sharpest monthly decline since January.
WASHINGTON (Reuters) -- New orders for long-lasting U.S. manufactured goods fell more sharply than expected in June, notching their biggest decline in five months as demand for communications and transportation equipment slumped, a government report showed on Wednesday.
The Commerce Department said durable goods orders fell 2.5%, the largest drop since January, after rising by a revised 1.3% in May, previously reported as a 1.8% surge. This was worse than market expectations for a 0.6% decline. Orders had advanced for two straight months.
New orders excluding transportation unexpectedly rose 1.1% in June, after climbing by 0.8% in May. Excluding defense, orders slipped 0.7% in June, after two months of straight gains.
Analysts polled by Reuters had expected orders excluding transportation to be flat.
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, rose 1.4% in June and above market expectations for a 0.2% gain.