Durable Goods Order Plummet

Unexpectedly.

New orders for U.S. manufactured goods fell in January by the most in three years as demand fell across the board from machinery to aircraft, suggesting the economy started the year on weaker footing than expected.  


Durable goods orders dropped 4.0 percent, the biggest drop since January 2009 when the country was still mired in a deep recession, according to Commerce Department data on Tuesday. 

Durable goods range from toasters to big-ticket items like aircraft which are meant to last three years and more. 

Excluding transportation, orders fell 3.2 percent. Economists had expected that reading to be flat. Machinery orders dropped 10.4 percent, the largest decline since January 2009. 

Non-defense capital goods orders excluding aircraft, a closely watched proxy for future business investment, fell 4.5 percent, the steepest drop in a year.