WASHINGTON: Orders for big-ticket US manufactured goods dropped more than expected in November, bogged down by a sharp decline in the aircraft segment, according to government data released Friday.
Durable goods orders dropped 2.1 percent to $270.6 billion after three consecutive monthly increases, the Commerce Department said in a statement.
This was largely due to a slump in new orders for aircraft, which analysts note is a highly volatile component.
Orders for non-defence aircraft and parts plunged 36.4 percent from October to November, data showed.
But excluding transportation, new orders held firm, with a 0.2 percent rise.
Meanwhile, demand was boosted by orders in the defence sector.
“The data point to weakening momentum in business investment but positive equipment spending so far in the fourth quarter,” said Rubeela Farooqi of High Frequency Economics in a note.
US factory orders beat expectations in October
“A moderation is likely, going forward, on a continuing shift in demand from goods to services and in response to higher interest rates,” she said, referring to borrowing costs after the central bank’s steep increases to the benchmark lending rate in recent months.
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