Durable goods orders declined in January

U.S. factory orders for durable goods fell 0.9 percent in January, the worst showing in three months, the government reported February 24.

The Commerce Department said that demand for durable goods, items expected to last three or more years, dropped by $1.7 billion last month to a seasonally adjusted $200.4 billion. A 27.1 percent drop in orders for commercial aircraft and parts led the decline. These orders fell $2.17 billion to $5.84 billion. Auto and auto parts orders also were down in January, dropping 3.8 percent to $38.15 billion.

The larger-than-expected decline followed two months of solid gains. Orders were up 1.4 percent in December and 2 percent in November. They fell by 1 percent in October.

Demand for primary metals, such as steel, rose by 1.6 percent, and demand for kitchen appliances and other electrical equipment rose by a record 13 percent.