Durable good orders experienced a steep, unexpected drop in April.
New orders for U.S.-made durable goods tumbled an unexpectedly large 4.8 percent in April while mortgage applications fell last week, a pair of soft economic reports showed on Wednesday.
Orders for durable items, those meant to last three years or longer, staged their largest fall since January on big declines in civilian aircraft and computer and electronic products orders.
Even when transportation was stripped out, orders for durable goods were down 1.1 percent.
Analysts in a Reuters poll had forecast a 0.5 percent drop in durable goods orders on weaker aircraft buying, but were anticipating a 0.5 percent gain excluding transportation.
“We have had some signs of weakness recently and this is a further sign of weakness,” said Kurt Karl, head of economic research for Swiss Re in New York.