US Manufactured Goods Orders Decline in January on Aircraft Woes

U.S. manufactured goods orders dropped more rapidly than expected in January amid a sharp decline in new orders for transportation equipment and civilian aircraft, according to fresh government data published Tuesday.

New durable goods orders for January decreased by 6.1% to $276.7 billion, the Commerce Department said in a statement, down sharply from a revised 0.3% decline in December.

This was lower than the market's expectations of a 4.4% drop, according to Briefing.com.

Transportation equipment, which fell by 16.2%, "led the decrease," the Commerce Department said.

Stripping out this component, new orders only declined by 0.3% from a month earlier.

The decline in new orders of nondefense aircraft and parts was even more pronounced, registering a 58.9% decline amid ongoing concerns about Boeing's 737 MAX line of aircraft.

The company is facing intensified scrutiny following a January 5 Alaska Airlines emergency landing that led to a temporary grounding of some Boeing 737 MAX aircraft.

"Overall and ex-transportation durable goods were weaker than expected in January," High Frequency Economics Chief U.S. Economist Rubeela Farooqi wrote in a note to clients.

However, core capital expenditure orders "met expectations and shipments surprised to the upside," she said, adding that it pointed to "a modest uptick in overall business spending."