Orders for long-lasting U.S. manufactured goods in August posted their biggest drop on record as the prior boost from aircraft unwound, but a rebound in business spending plans pointed to underlying strength in the manufacturing sector.
The Commerce Department said on Thursday durable goods orders, items ranging from toasters to aircraft that are meant to last three years or more, dropped 18.2 percent, the largest decline since the series started in 1992. That partially reversed July’s aircraft-driven 22.5 percent surge.
Economists polled by Reuters had forecast durable goods orders falling 18 percent last month after a previously reported 22.6 percent jump in July.
Orders for the volatile transportation category declined 42.0 percent last month as civilian aircraft orders tumbled 74.3 percent. Transportation orders had soared 315.6 percent in July.
via Reuters
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