WASHINGTON - Durable goods orders unexpectedly declined 1.3% in March, the first drop in four months, pulled lower by transportation equipment orders, the Commerce Department reported today.
Excluding transportation goods, durable goods orders rose 2.8%, the largest monthly gain since December 2007. Orders for nondefense capital goods, excluding aircraft, increased 4.0%.
Economists expected durable goods orders to increase 0.3% in March and for orders excluding transportation goods to increase 0.7%, according to the median estimate from Thomson Reuters.
Transportation equipment orders fell 12.9%, the largest decline since June, mostly due to a decline in nondefense aircraft and parts. Motor vehicle and parts orders increased 2.5% in March.
Total orders in February were revised higher to a 1.1% increase from a 0.5% gain reported last month, and orders excluding transportation were also revised higher to a 1.7% rise from the originally reported 0.9% jump.
March orders for computers and electronic products increased 3.4%, the strongest gain in more than a year. Orders for machinery increased 8.6%, the largest rise since September.
Total unfilled orders for March decreased 0.3%. Total inventories increased 0.2%.
