Durable Goods Orders Drop Sharply in January

Durable goods orders fell 3.7 percent in January to $239.7 billion, according to Commerce Department data. January’s decline follows two months of increases and is the biggest decline since July 2017. Analysts expected a decline of 2.0 percent or less. Durable goods are manufactured items that are expected to last three years or more.

The volatile category of transportation orders contributed heavily to January’s decline, plummeting 10 percent for the month. Core capital goods (non-defense capital goods minus aircraft) fell 0.2 percent last month, after a 0.6 percent decline in December. The category is seen as a proxy for business spending.