Durable Goods drop 4% in Jan. 2012, biggest drop in 3 years, machinery orders drop 10.4%

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Unexpectedly.

2/28/12, "Durable Goods Orders in U.S. Drop 4%, Marking Worst Decline in Three Years," Bloomberg

"Orders for U.S. durable goods fell in January by the most in three years, led by a slowdown in demand for commercial aircraft and business equipment.

Bookings for goods meant to last at least three years slumped 4 percent, more than forecast, after a revised 3.2 percent gain the prior month, data from the Commerce Department showed today in Washington. Economists projected a 1 percent decline, according to the median forecast in a Bloomberg News survey.

The expiration at the end of 2011 of a tax incentive allowing full depreciation on equipment purchases may have prompted a slowdown in investment at the start of this year....

Capital Goods

Orders slumped 10.4 percent for machinery, the most in three years, and primary metals demand dropped 6.7 percent....

Shipments of non-defense capital goods excluding aircraft, used in calculating gross domestic product, decreased 3.1 percent, the most since April 2009, after rising 2.8 percent. "...via Instapundit

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