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US Durable Goods Orders Plummet 4.5% in January, Led by 54.6% Drop in Aircraft Orders

The US Commerce Department has reported that orders for durable goods in the United States, including aircraft, cars, and large machinery that are older than three years, fell 4.5% in January. This comes after a 5.1% increase in December.

The decline in durable goods orders was largely attributed to a 54.6% drop in aircraft orders. However, other sectors also experienced declines, including orders for primary metals, fabricated metal products, and electrical equipment.

Despite the overall decline, there was a bright spot in the report. The sector for basic durable goods purchases, which excludes aircraft and weapons products, rose 0.8% in January, beating analysts’ expectations of a 0.1% increase. This is indicative of spending plans and suggests that businesses may be investing in long-term projects.

While the decrease in durable goods orders is a concern, it is important to note that this sector is known for its volatility and can be influenced by factors such as changes in demand, supply chain disruptions, and global economic conditions.

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