U.S. Durable Goods Orders Slump 1.4% In February, Much More Than Expected

WASHINGTON (dpa-AFX) - Largely reflecting a steep drop in aircraft orders, the Commerce Department released a report on Tuesday showing new orders for U.S. manufactured durable goods slumped by much more than expected in the month of February.

The Commerce Department said durable goods orders tumbled by 1.4 percent in February after falling by a revised 0.5 percent in January.

Economists had expected durable goods orders to decrease by 0.5 percent compared to the unchanged reading that had been reported for the previous month.

The much bigger than expected decrease in durable goods orders came as orders for transportation equipment plunged by 5.4 percent in February after slumping by 1.9 percent in January.

Orders for non-defense aircraft and parts led the way lower, plummeting by 28.6 percent, while orders for defense aircraft and parts also tumbled by 3.8 percent.

Excluding the steep drop in orders for transportation equipment, durable goods orders climbed by 0.8 percent in February after rising by 0.3 percent in January. Ex-transportation orders were expected to increase by 0.5 percent.

The report showed a 4.9 percent spike in orders for computers and related products along with notable increases in orders for primary metals and machinery.

The Commerce Department also said orders for non-defense capital goods excluding aircraft, a key indicator of business spending, climbed by 0.6 percent in February after falling by 0.4 percent in January.

Shipments in the same category, which is the source data for equipment investment in GDP, grew by 0.9 percent in February after coming in unchanged in January.

'Headline durable goods orders were a touch weaker than expected in February,' said Bernard Yaros, Lead US Economist at Oxford Economics. 'However, core orders, which provide a clearer gauge of business investment plans, beat expectations.'

'This is a prewar reading, though, and geopolitical risks have historically undermined business spending,' he added. 'Even so, the business equipment spending was heading into the Iran war with plenty of momentum.'

Copyright(c) 2026 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX