Durable goods orders fell sharply in April

New orders for manufactured durable goods in April decreased $10.5 billion or 4.8 percent to $210.2 billion, the U.S. Census Bureau announced today. This decrease follows two consecutive monthly increases, which includes a 6.6 percent March increase. Excluding transportation, new orders decreased 1.1 percent.Excluding defense, new orders decreased 3.8 percent.

The Associated Press reported that the April setback was the largest since a 7.6 percent drop in January and reflected a 32.2 percent falloff in demand for commercial aircraft after big gains in previous months and a 10.4 percent decrease in orders for computers and other electronic products.

Transportation equipment, down following two consecutive monthly increases, had the largest decrease, $8.8 billion or 12.7 percent to $61.0 billion. The decrease was led by nondefense aircraft and parts, which decreased $6.3 billion.

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