Durable-Goods Orders Fell 1% in February; Flat Excluding Transportation
March 24 2023 - 09:24AM
Dow Jones News
By Bryan Mena
New orders for durable goods - products meant to last at least
three years - decreased 1% in February to a seasonally adjusted
$268.4 billion, the Commerce Department said Friday.
Demand for U.S.-made durable goods - which include factory
equipment, computers and washing machines - declined on weaker
orders for cars, planes and military equipment. Excluding
transportation, orders were unchanged from the prior month. When
excluding defense, new orders fell 0.5% in February from the prior
Orders for motor vehicles and parts fell 0.9% and defense
aircraft and parts declined 11.1%, the department said.
The overall February drop came after a revised 5% decrease in
January, a larger fall than previously estimated.
The figures measure demand from businesses and consumers - and
also reflect rising prices. Orders figures aren't adjusted for
inflation. Consumer price increases have cooled recently, but
remain historically high.
The Federal Reserve moved to raise interest rates by a quarter
percentage point this week as it tries to tame still-high
inflation. Higher interest rates can make big-ticket purchases more
expensive for businesses and consumers.
A closely watched proxy for business investment - new orders for
nondefense capital goods excluding aircraft - increased 0.2% to
$75.2 billion in February compared with the previous month, the
Commerce Department said.
Write to Bryan Mena at email@example.com
(END) Dow Jones Newswires
March 24, 2023 09:09 ET (13:09 GMT)
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