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Durable goods orders tumble in February

Apr 4, 2016, 19:30 IST

Factory orders fell 1.7% in February, just as expected, according to the Census Bureau.

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Economists had estimated that factory orders fell 1.8% during the month, according to Bloomberg. Excluding the volatile transportation category, they had forecast a 1% decline.

The data also included final numbers for durable goods orders in February. After positive readings in January, orders tumbled.

Orders for goods built to last for a few years fell 3%, and 1.3% excluding transport. This was revised down from a preliminary reading of -2.8% and 1% respectively.

Economists had estimated that durable goods fell 2.8%, and 1% excluding transport, unchanged from the preliminary report.

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Shipments of durable goods fell 1%, also revised lower from an earlier estimate of 0.9%.

In a preview, Wells Fargo wrote, "The orders figures were disappointing and dashed hopes that January's gains might mark the start of a new upward trend. If the factory orders print corroborates the durable goods orders' reading, it will reinforce our expectations for a weak first quarter for equipment spending."

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