Durable goods orders drop for third month

Source: Exec Digital USA

Date :11/28/2007 9:33:23 AM

New orders for long-lasting U.S.-made manufactured goods dropped for a third month consecutive month in October, as consumers held back on purchases of computers and other electronic goods.

Orders for durable goods – which are goods designed to last at least three years - fell 0.4 percent last month after declining 1.4 percent in September and 5.3 percent in August according to a Commerce Department report on Wednesday.

Excluding transportation items, orders were down more sharply by 0.7 percent. Analysts had forecast that overall orders would be flat and that orders excluding transportation would rise 0.3 percent.

Slowdown

The report provides more evidence that the manufacturing sector is slowing despite booming exports with demand for core capital goods - which gauges companies’ willingness to make new investments, weakening 2.3 percent in October - the biggest monthly decline since a 2.4 percent drop last February.

Orders for business investment goods have fallen 1.7 percent through the first 10 months of 2007.

November 28, 2007