U.S. orders for durable goods unexpectedly fell in February, possibly driven down by disruptive winter weather, a shortage of computer chips, and a particularly strong January.
Orders for durable goods fell 1.1 percent, the Commerce Department said Wednesday. The prior month was revised up a tenth of a percentage point to show a 3.5 percent gain.
This was the first decline in ten months. Transportation, down following five consecutive monthly increases, led the decrease, $1.3 billion or 1.6 percent to $83.6 billion. New orders for motor vehicles fell 8.7 percent and shipments fell 8.9 percent. Automakers said that they have slowed production due to a shortage of microchips.
Core capital goods orders, which exclude aircraft and defense spending, fell from a 0.6 percent expansion to a negative 0.8 percent. Economists had forecast a 0.5 percent gain, in line with January.
New Orders for machinery were flat with the prior month, Orders for computers fell 1.9 percent after rising 8.9 percent in January.
Shipments of manufactured durable goods in February, down following five consecutive monthly increases, decreased $9.1 billion or 3.5 percent to $250.9 billion. Transportation equipment, also down following five consecutive monthly increases, led the decrease, $7.0 billion or 8.2 percent to $78.6 billion.
Unfilled orders for manufactured durable goods in February, up two consecutive months, increased $8.4 billion or 0.8 percent to $1,082.0 billion. This followed a 0.2 percent January increase. Transportation equipment, up following eleven consecutive monthly decreases, led the increase, $5.0 billion or 0.7 percent to $711.1 billion.