Official figures show that new orders for long-lasting US manufactured goods unexpectedly fell for a second straight month in June, posting their largest decline since August. The figures provide further evidence that US economic growth cooled in the second quarter.
The Commerce Department said durable goods orders fell 1% after a revised 0.8% drop in May. Analysts had expected a 1% increase in June.
Data ranging from consumer spending to manufacturing have suggested the recovery from the longest and deepest recession since the 1930s took a step back in the past few months. The US government reports Q2 growth figures on Friday.
Non-military aircraft orders tumbled 25.6% in June after a 30.2% fall in May. Overall orders were also pulled down by bookings for computers and electronic products, which saw their largest decline since October.
Orders for machinery recorded their biggest decline in 14 months, while those for primary metals fell by the most since March 2009.
Durable goods orders are a leading indicator of manufacturing, which in turn provides a good measure for overall business health.
Manufacturing is leading the economy's recovery from the most brutal downturn since the 1930s as businesses replenish inventories drawn down to record lows during the recession, but the sector has shown some signs of exhaustion in recent months.
In a positive sign, non-military capital goods orders excluding aircraft, a closely watched indicator of business spending, rose 0.6% in June after increasing an upwardly revised 4.6% the previous month. Markets had expected a flat reading.
Separately, demand for loans to buy US homes rose for the second straight week to the highest level since the end of June, but hovered just above 13-year lows, the Mortgage Bankers Association said. Home purchase loan demand increased 2% last week.
