WASHINGTON, Nov 24 (AFP) - New orders for US durable goods -- items designed to last for at least three years -- unexpectedly dropped 0.4 percent in October after the previous month's increase was revised sharply upward, the Commerce Department said Wednesday.
Excluding transportation-related items, the orders were up 0.7 percent in October.
Economists had called for orders to rise about 0.5 percent in the month.
Total orders rose a revised 0.9 percent in September, up from the 0.2 percent increase previously reported. The widespread decline, the second in three months, was softened by a rise in orders of transportation-related goods.
A closely watched economic indicator, it also fluctuates a great deal, largely as a result of transportation and defense goods orders.
October's dip was amplified by a sharp drop in the transportation sector, although defense equipment orders shot up 18.5 percent, according to Commerce Department data.
Excluding the military orders, there was a 1.5 percent drop in durable goods orders in October.
After two months of increases in computer and electronic equipment orders, the sector pulled back 5.7 percent, with computers alone plummeting 10.3 percent.
Orders for transportation-related goods increased 0.3 percent, but deliveries were scaled back 1.1 percent in October from the previous month.
11/24/2004 15:09 GMT - AFP