US durable goods orders plunge 6.1 percent in January, exceeding expectations
Date
2/28/2024 1:58:17 AM
(MENAFN) According to a report released Tuesday by the Commerce Department’s Census Bureau, US durable goods orders experienced a significant decline of 6.1 percent in January, surpassing initial estimates. The data revealed that new orders for manufactured durable goods decreased for the third time within the last four months, dropping by USD18 billion to a total of USD276.7 billion, as highlighted in the bureau's statement.
Expectations had anticipated a monthly decline of 4.9 percent for this figure, following a modest 0.3 percent decrease recorded in December. Excluding transportation, the report indicated a lesser decline of 0.3 percent in new orders. Furthermore, the agency emphasized that new orders excluding defense experienced a sharp plummet of 7.3 percent.
Transportation equipment emerged as a primary driver behind the overall decrease, with the sector experiencing declines in three out of the last four months. Specifically, transportation equipment saw a notable reduction of USD17.4 billion or 16.2 percent, bringing its total to USD89.8 billion, according to the report's findings.
The pronounced decline in durable goods orders underscores a challenging trend within the manufacturing sector, highlighting potential concerns about economic stability and consumer demand. The data reflects broader uncertainties and economic headwinds, raising questions about the trajectory of recovery and the potential implications for industries reliant on durable goods production and consumption.
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