U.S. durable-goods orders, business investment plunge

  • 2/10/2023
  • 16:11
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Washington, Rabi'II 18, 1437, January 28, 2016, SPA -- Orders to U.S. factories for durable goods fell sharply in December, with a key category that tracks business investment plans dropping for a second consecutive month, the government reported Thursday. The Commerce Department said orders of durable goods-expensive manufactured items expected to last at least three years-fell 5.1 percent last month following a 0.5 percent drop in November. Orders fell $12 billion to $225.4 billion in December. Last month's weakness was led by a 29.4 percent drop in demand for commercial aircraft, a volatile category that swings sharply from month to month. But demand also was weaker in other areas. Excluding transportation, orders still fell 1.2 percent following a 0.5 percent November drop. Orders for machinery fell 5.6 percent, while orders for computers and other electronics declined 2 percent. The closely watched category that is a gauge of business spending plans fell 4.3 percent in December after a 1.1 percent drop the previous month. Durable-goods orders have fallen in four of the past five months, reflecting pressures facing U.S. manufacturers, including a strong dollar and spreading global economic weakness, both of which have hurt export sales. U.S. industry has struggled in recent months, and economists do not expect a quick rebound. They are concerned that export sales will continue to be weak as the dollar keeps rising. There also is concern about economic weakness in key export markets like China-the world's second-biggest economy-and other emerging markets. --SPA 18:13 LOCAL TIME 15:13 GMT www.spa.gov.sa/w

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