Washington, Dec. 24-- Durable-goods orders unexpectedly fell for the first time in three months in November amid a plunge in orders for computers, communications equipment and aircraft.
Orders dropped 3.1% to $180.1 billion, the Commerce Department said Wednesday. But orders for October were revised to a 4% gain, much stronger than the previously estimated 3.4% increase.
Economists had expected another gain after strong manufacturing surveys and advances in industrial production for the month. A Dow Jones-CNBC survey of 15 economists had forecast orders to advance 0.8% for the month.
The overall decrease in orders, on big-ticket items designed to last at least three years, was the largest monthly decline since a 6% drop in September 2002. Orders slipped 0.1% in August but climbed sharply in September and October. Estimates on durable goods are volatile and subject to revision, however, so analysts caution against using monthly figures when trying to tell where the U.S. economy is heading.
Economists are expecting slower, yet solid, growth in the final months of 2003, following the economy's 8.2% surge in the third quarter. Recent data pointed to an improving manufacturing sector amid the rising economy.
The November durable-goods report showed decreases across the board.
Transportation orders fell 1.6%, dragged lower by waning demand for both defense and nondefense aircraft. Orders for cars and parts sank 1.2%. Excluding transportation, durable-goods orders fell 3.7%.
Capital-goods orders in November decreased 6.2%, as defense capital goods fell 4.7% after an October surge. Excluding defense orders, overall durable-goods orders fell 2.9%.
Demand for nondefense capital goods, which are meant to last at least 10 years and act as an indicator of business spending, fell 6.4%. Excluding aircraft, orders for nondefense capital goods were off 5.9%.
Orders for computers and electronic products decreased 10.8% in November.
