Orders for durable goods declined by a sharper than expected nine-tenths of a percentage point in December, the government said Thursday.
Economists had forecast a milder 0.5 percent drop in orders for durable goods.
Durable goods are those made to last three years or more.
Core capital goods orders–which exclude transportation and defense, and are considered a proxy for business investment–were flat compared with November. Orders for November were revised up to show a rise of 0.3 percent gain after the preliminary estimate of no change.
Orders for transportation equipment led the decline in December, falling 3.9 percent. Orders for cars, trucks, and motor vehicle parts rose 1.4 percent. Orders for nondefense aircraft fell 14.4 percent and defense aircraft orders fell 11.2 percent.
Excluding transportation, orders for durable goods rose 0.4 percent in December. Orders for machinery fell 0.1 percent. Orders for computers and related equipment rose 0.5 percent while orders for phones and related communications equipment fell 5.9 percent and orders for appliances declined 0.4 percent.