Durable Goods Orders Drop Sharply in August

Washington, DC, Sept. 25, 2008–New orders for durable manufactured goods dropped by a sharper-than-expected 4.5 percent in August as demand for transportation equipment and many other costly items plummeted, the Commerce Department said on Thursday.

Last month’s slump in orders for durable goods – items intended to last three years or more — followed a revised 0.8 percent July increase, previously reported as a 1.3 percent gain. Wall Street economists had forecast a 1.6 percent decline in August orders.

Excluding transportation, August durables orders were down 3 percent after edging up 0.1 percent in July. The fall in orders excluding transportation was the steepest since the beginning of 2007.