Orders to US factories for long-lasting manufactured goods declined in April, reflecting a pullback in orders for transportation equipment, a new government report shows.
Orders for durable goods -- products such as cars and consumer electronics that continue to be useful for three or more years – fell 0.5 percent in April, the US Commerce Department said Tuesday.
Economists surveyed by The Wall Street Journal had expected overall orders to fall 0.1 percent.
Compared with a year earlier, overall orders declined 1.3 percent in April, which likely reflects cautious spending by companies amid lower oil prices, a stronger US dollar and weak demand abroad.
The drop in durable goods was largely due to the decrease in orders for transportation equipment, which fell by 2.5 percent after jumping by 15.2 percent in March.
Orders for commercial aircraft and parts dropped 4.0 percent in April, while orders for defense aircraft and parts decreased 12.8 percent. Orders for primary metals fell 2.1 percent and orders for computers dropped 3.4 percent.
US factories have been struggling with weak exports due to a big rise in the value of the dollar. A stronger dollar makes American exports more expensive in international markets. It also lowers the cost of imported goods, making them more attractive for US consumers.
The manufacturing sector dropped 10,000 jobs in April after losing 3,000 the month before.
Wall Street stocks fell in early trade Tuesday following the declining order for manufactured goods.
The Dow Jones Industrial Average was down 0.72 percent. The S&P 500 fell 0.64 percent, while the Nasdaq Composite Index fell by 0.79 percent.
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