U.S. March Durable Goods Orders Down 2.8%




April 27, 2005
By Robert Schroeder, MarketWatch
CBS

WASHINGTON (MarketWatch) - U.S. orders for durable goods declined 2.8% in March, the largest drop since September 2002, the Commerce Department reported Wednesday.

Economists surveyed by MarketWatch were expecting orders to rise 0.3%.

This is the third consecutive month orders for durable goods have fallen.

Orders for durable goods in February were revised to a drop of 0.2% from a 0.3% increase.

Shipments fell 0.2%, with declines across several categories.

Inventories rose 0.4% in March.

Transportation represented the biggest drop in orders, down 7.8%. Orders for civilian airplanes fell 22.7%, while orders for military aircraft dropped 35%. Orders for motor vehicles, meanwhile, fell 2.4%. It was the third straight month that auto and truck orders fell.

All orders excluding transportation fell 1%, the second straight decline.

Core orders - capital equipment used by businesses - fell 4.7% after falling 2.5% in February. It was the largest decline since November 2003.

Orders for computers and primary metals were the only categories that rose in March.

New orders for machinery fell 7.6%, while shipments fell 2.8%.

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