Durable goods slide 2%

Antelope Valley Press - - Business -

WASH­ING­TON (AP) — Or­ders to U.S. fac­to­ries for big-ticket man­u­fac­tured goods fell by the largest amount in six months, led by a large de­crease in or­ders for de­fense air­craft and parts. A closely watched cat­e­gory that tracks busi­ness in­vest­ment ticked up 0.1%.

Or­ders for durable goods fell 2% last month, the big­gest de­cline since May, the Com­merce Depart­ment said Mon­day. Or­ders have fallen in two of the past three months. Oc­to­ber’s num­ber was re­vised down to 0.2% from a 0.6% gain.

Trans­porta­tion equip­ment or­ders fell 5.9%, its big­gest de­cline since May. Ex­clud­ing trans­porta­tion, new or­ders were flat.

Most an­a­lysts had ex­pected a re­bound in over­all or­ders of more than 1% for Novem­ber, likely fore­cast­ing a bounce due to the end of a work­ers strike at Gen­eral Mo­tors. The strike lasted 40 days over two months and dragged down durable goods or­ders in Septem­ber and Oc­to­ber.

Or­ders for mo­tor ve­hi­cles and parts did re­bound, up 1.9%, but it wasn’t enough to off­set the large de­crease in de­fense air­craft or­ders.

Ex­clud­ing de­fense, new or­ders were up 0.8%.

Or­ders for de­fense air­craft and parts fell 72.7% and are down 14% the past year.

De­mand for com­mer­cial air­craft and parts fell 1.8% last month and is down 38% this year. Boeing had al­ready sus­pended pro­duc­tion of the 737 Max af­ter two crashes that killed 346 peo­ple, then said last week it would halt Max pro­duc­tion in Jan­uary as it has be­come in­creas­ingly clear that the com­pany still has nu­mer­ous reg­u­la­tory hur­dles to clear.

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