April 20, 2024

Durable Goods Demand Decreases

WASHINGTON (AP) — Businesses cut back on their orders for heavy machinery, computers, autos and airplanes in April, reducing demand for long-lasting manufactured goods by the largest amount in six months.

Orders for durable goods fell 3.8 percent, the Commerce Department reported Wednesday. And orders for nonmilitary capital goods excluding aircraft were down 2.8 percent.

The weakness was spread across a number of industries and was probably influenced by supply chain disruptions stemming from the Japanese earthquake in March. Demand for motor vehicles and parts, an industry dependent on Japanese component parts, declined 4.4 percent in April, the biggest drop since last August.

Analysts expect the April declines to be temporary. Strong demand domestically and overseas has kept United States factories humming, making manufacturing one of the strongest sectors of the economy since the recession ended in June 2009.

Article source: http://feeds.nytimes.com/click.phdo?i=8ed963937da1356c71d3b4d587747da8

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