Orders for US durable goods fell sharply in April on slumping demand for cars and military aircraft, the government said today in a report that showed the US factory sector still mired in a downturn.
The Commerce Department said orders for durable goods - items meant to last three or more years - slid 2.4 per cent in April after a revised gain of 1.4 per cent in March.
Analysts had been anticipating a smaller 1 per cent drop-off in orders after March's surprise gain. Commerce said April's drop in new orders was the largest since September 2002, when orders fell by 4.6 per cent.
While orders for transportation equipment fell by a hefty 5.4 per cent, accounting for much of the overall decline, weakness was seen across many manufacturing sectors.
Orders excluding transportation goods fell 1.2 per cent, while orders excluding defense-related goods were down by 1.5 per cent.
The report underscored the fragile state of the US factory sector, which continues to struggle with excess capacity in the wake of the 1990s boom in business investment.
The closely-watched index of manufacturing activity compiled by the Institute for Supply Management, issued earlier this month, dipped to 45.4 in April from 46.2 in March as new orders hit an 18-month low.
Factory payrolls were also down again in April, with the sector shedding 95,000 jobs, the Labor Department said earlier this month.
Within the Commerce report, orders for motor vehicles and parts dipped 3 per cent while orders for military aircraft and parts fell 26.4 per cent, Commerce said.