Durable Goods Orders in the United States experienced a surprise drop in February, declining by 1%, or $2.6 billion, to $268.4 billion, as announced by the US Census Bureau on Friday. This followed a downwardly revised reading of -5% in January, indicating that the economy is facing significant challenges. The report further noted that excluding transportation, new orders remained unchanged, while excluding defense, new orders declined by 0.5%.
The transportation sector, which has experienced declines in three out of the past four months, was the primary driver of the decrease, with orders falling by $2.6 billion, or 2.8%, to $89.4 billion. This news was not welcomed by investors, who had expected durable goods orders to increase by 0.6%, and it could signal further economic uncertainty in the months to come.
Despite this unexpected drop in durable goods orders, the US dollar index remained in positive territory above 103.00, rising 0.6% on the day at 103.20. It remains to be seen how this news will impact the wider economy, and if it will lead to a decrease in consumer spending and business investment.
