Orders for durable goods unexpectedly dropped stateside in February, a sign the slowdown in global growth may be weighing on American manufacturers.
Bookings for goods meant to last at least three years declined 1.4% after a 2% gain in January that was smaller than previously estimated, data from the Commerce Department showed Wednesday in Washington. The median forecast of economists estimated durable goods orders would rise 0.2%.
Demand for American-made products may be softening as economies abroad struggle to accelerate and a stronger dollar makes it more attractive for foreign customers to buy from elsewhere. Increased business spending will be needed to provide a boost to the economy following what some economists are projecting as lackluster growth in the first quarter.
Forecasts in the survey of economists ranged from a 2% drop to a 3.5% increase.
Orders for non-military capital goods excluding aircraft, considered a proxy for future business investment, also dropped 1.4% in February, a sixth consecutive decline. That marked the longest stretch of decreases since mid-2012. They were projected to rise 0.3%.
Shipments of non-military capital goods excluding aircraft, which is used to calculate gross domestic product, increased 0.2% in February after falling a revised 0.4% the month before. January had previously been reported as a 0.1% gain.
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