New orders for long-lasting U.S. manufactured goods unexpectedly fell for a second straight month in June, posting their largest decline since August, according to a government report Wednesday that was further evidence economic growth cooled in the second quarter.
The Commerce Department said durable goods orders fell 1.0 percent after a revised 0.8 percent drop in May.
Analysts polled by Reuters had forecast orders increasing 1.0 percent in June from May’s previously reported 0.6 percent decline. Durable goods orders had been expected to rise based on the fact that Boeing Co. received 49 orders for civilian aircraft in June up from five in May.
But non-defense aircraft orders tumbled 25.6 percent in June after falling 30.2 percent the prior month. Overall orders were also pulled down by bookings for computers and electronic products, which saw their largest decline since October.
Durable goods orders are a leading indicator of manufacturing, which 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 in the recession but has shown some signs of exhaustion in recent months.
