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.