Durable Goods Orders Tumble as Auto Demand Plunges

Durable Goods Orders Tumble as Auto Demand Plunges - CNBC

New orders for long-lasting U.S. manufactured goods fell more than expected in April to record their largest decline in six months as aircraft and motor vehicle orders tumbled, a government report showed on Wednesday.

The Commerce Department said durable goods orders dropped 3.6 percent after an upwardly revised 4.4 percent rise in March, which was previously reported as a 4.1 percent increase.

Economists polled by Reuters had expected orders to decline 2.2 percent last month.

Durable goods orders are a leading indicator of manufacturing and the report suggested some cooling in factory activity as the auto sector deals with a shortage of parts following an earthquake in Japan.