U.S. orders for long-lasting goods plunge in March

Orders for long-lasting factory goods fell by the largest amount in three years last month, according to a report out this morning from the Commerce Department, mostly because demand for commercial aircraft plummeted. Companies also ordered less machinery and other equipment, signaling manufacturing output may slow. Orders for durable goods dropped 4.2% in March, the steepest fall since January 2009. Commercial aircraft orders, a volatile category, fell by nearly 50%. Excluding transportation equipment, orders declined 1.1%. That’s the second drop in that category in three months. And orders for so-called core capital goods—considered a good measure of business investment plans—declined 0.8%. Companies cut their orders for steel and other metals, industrial machinery and computers. Shipments of durable goods—those expected to last three years or more—increased last month, which adds to growth in the first three months of the year. In March, durable goods orders totaled $202.6 billion, 36% above the recession low. Still, orders remain 17% below their peak in December 2007. The government will report on the economy’s first-quarter growth Friday. Get more figures from today’s report in the complete story here.