Washington, DC, May 24, 2006--Durable goods orders fell 4.8% in April, the Commerce Department said Wednesday.
This was the first and sharpest decline in durable-goods orders since January.
The decline was broad-based. There was a sharp drop in aircraft orders. Only orders for metals and electrical equipment increased in April.
The decline was sharper than forecast. Economists were expecting orders to fall 0.6%.
Economists expected a decline as a result of an exceptionally strong March. Durable orders in March were revised to a 6.6% increase from 6.4% previously estimated.
Shipments of durable goods decreased 0.9% in April after a 0.3% gain in March. Inventories of durable goods rose 0.8% in April and have risen in three of the past four months.
Orders for core capital goods equipment fell 1.7% in April. Shipments of core goods rose 0.9%.
Orders for transportation goods had the largest decline, falling 12.7%, including a 32.2% drop in aircraft orders and a 1.6% fall in motor vehicle orders. Shipments of transportation goods decreased 3.2%.
Excluding transportation, orders fell 1.1% in April, the second decline in the past three months.
Excluding defense, durable goods fell 3.8%.
Orders for electronics excluding semiconductors fell 10.4% as orders for communications equipment fell 27.4%. Orders for computers fell 1.3%. Shipments of electronics fell 0.5%.
Orders for machinery slipped 0.2% while shipments rose 0.1%. Orders for electrical equipment rose 5.2%, while shipments rose 0.7%. Orders for fabricated metals increased 1.9%, while shipments rose 0.4%. Orders for primary metals rose 3.2% while shipments rose 0.9%.
Unfilled orders of durable goods rose 1.5% in April, which is the eleventh monthly increase in the past year.
