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News > Jobs & Economy
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Durables orders tumble
Demand for goods meant to last three years or sank 2.9% in April, far below estimates.
May 26, 2004: 12:22 PM EDT

NEW YORK (CNN/Money) - April orders for long-lasting goods made in the United States posted the largest drop in 20 months, the government reported Wednesday, coming in well below economists' forecasts.

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Durables Orders
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Durable goods orders sank 2.9 percent to $191.3 billion last month after coming in at a revised increase of 5.7 percent in March, the Commerce Department reported. Economists had expected a drop of 0.8 percent, according to Briefing.com.

Excluding transportation, new orders fell 2.1 percent, and excluding defense, new orders dropped 2.4 percent, indicating a broad-based decline in orders from the manufacturing sector.

Following the report, U.S. Treasurys moved higher, while stock prices were mixed.

In a separate report, the Commerce Department said new home sales plunged 11.8 percent in April to a seasonally adjusted annual rate of 1.09 million units, compared with a record high rate of about 1.24 million units in March.

April's decline in durable goods orders followed a big gain in March and a 3.9 percent jump in February. Considering that and the notoriously volatile nature of this series, few economists were alarmed by the decline.

"Look for orders to rebound in May, reflecting broad-based recovery within the manufacturing sector," Edward Yardeni, chief investment strategist at Prudential Financial, said in a note to clients.

Orders for non-defense capital goods excluding aircraft, considered a proxy for business investment, fell 3.5 percent in April. But that followed gains of 6.0 percent and 2.3 percent in March and February, respectively.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.