Durable Goods Orders Fall in December

Washington, DC, Jan. 29, 2009--Orders to U.S. factories for big-ticket manufactured goods fell for the fifth straight month in December.

The Commerce Department said Thursday that new orders for durable goods dropped by 2.6 percent last month, an even bigger decline than the 2 percent decline that economists expected.

Orders fell 5.7 percent for the year, the second biggest drop on government records, exceeded only by a 10.7 percent plunge in 2001.

There were big drops in demand last month for commercial aircraft, primary metals, machinery and computers. Orders for defense aircraft and electrical appliances were among the few places showing increased demand.

In the durable goods report, orders for all transportation products posted a 0.6 percent increase. But that strength came from a 16.4 percent jump in demand for military aircraft. Orders for commercial aircraft were down a huge 43.6 percent, while demand for motor vehicles and parts fell by 5.2 percent.

Shipments of durable goods dropped 0.7 percent in December and fell 2.7 percent for all of 2008, the worst showing since shipments plummeted 8.4 percent in 2001.