New orders for long-lasting US-made goods edged up an unexpectedly weak 0.3 per cent last month as declining demand for a broad array of items was offset by strong aircraft orders, the government said today.
Excluding the volatile transportation category, orders for durable goods - pricey manufactured items meant to last three years or more - slipped 0.2 per cent, the Commerce Department said.
The report offered a disappointing signal on the factory sector and business spending plans.
Wall Street economists had expected durable goods orders to climb 1 per cent overall and 0.5 per cent excluding transportation.
Civilian aircraft orders shot up 32.1 per cent last month, partly reversing a big January drop, and defense aircraft orders gained 11.3 per cent.
Economists had looked for a strong non-defense figure after Ryanair announced an order for planes from Boeing valued at more than $4 billion.
The report suggested businesses curtailed spending plans last month as orders for non-defense capital goods, excluding aircraft, fell 2.1 per cent after a healthy 4.4 per cent January gain.
Demand for machinery dropped 1.1 per cent, orders for fabricated metal products declined 1 per cent and communications equipment orders slid 1.2 per cent. Orders for primary metals, however, rose 0.6 per cent, and orders for computers gained 2.1 per cent, reversing a January drop.
The report also showed a 1.6 per cent decline in shipments of durable goods in February, which could lead economists to scale back forecasts of first-quarter economic growth.