Durable goods orders fall in October, weighed down by volatile aircraft component

Orders for goods made to last more than three years slowed much more quickly than expected last month amid a decline in those for aircraft, both civilian and military.

Total durable goods orders shrank by 1.2% month-on-month to reach $236.01bn, according to the Department of Commerce.

Economists had penciled in a rise of 0.3% on the month.

However, excluding transportation they rose by 0.4%, exactly as expected, buoyed by stronger demand for primary metals, machinery and computers.

In comparison to a year ago, total orders were up by 4.9%.

Transportation equipment orders declined by 4.3% versus September to $77.14bn on the back of an 18.6% drop in oft-volatile orders for civilian aircraft to $10.6bn.

Orders for defence aircraft also fell, by 11.3% to $3.11bn.

A key lead indicator for investment trends, orders for capital goods excluding defence and aircraft, also softened, falling by 0.5% to $66.17bn.