U.S. durable goods orders unexpectedly pull back
The Commerce Department said durable goods orders tumbled by 1.2% in October after surging up by an upwardly revised 2.2% in September.
The decrease surprised economists, who had expected orders to edge up by 0.3% compared to the 2.0% increase that had been reported for the previous month.
The unexpected decline was largely due to the pullback in orders for transportation equipment, which slumped by 4.3% in October after spiking by 4.4% in September.
Orders for non-defense aircraft and parts showed a substantial decrease, plunging by 18.6% in October after soaring by 33.9% in September.
Excluding the drop in orders for transportation equipment, durable goods orders rose by 0.4% in October after jumping by 1.1% in September. Ex-transportation orders had been expected to climb by 0.5%.
The increase in ex-transportation orders was partly due to a rebound in orders for primary metals, which surged up by 1.3% in October after falling by 0.5% in the previous month.
The report also showed increases in orders for electrical equipment, appliances, and components, machinery and computers and electronics products. ■