The U.S.
Commerce Department reported on Tuesday that the value of new factory orders plunged
by 3.6 per cent m-o-m in January 2024, following a downwardly revised 0.3 per cent m-o-m fall (from +0.2 per cent
m-o-m) in December 2023. This
marked the steepest monthly decline in factory orders since April 2020 (-13.9
per cent m-o-m).
Economists had predicted
a drop of 2.9 per cent m-o-m for January.
According to
the report, orders for durable goods plummeted 6.2 per cent m-o-m in January, primarily
reflecting a -16.2 per cent m-o-m tumble in transportation equipment. Meanwhile, orders for
nondurable goods fell by 1.1 per cent m-o-m.
Total factory
orders excluding transportation, a volatile part of the overall reading, slipped
by 0.8 per cent m-o-m (compared to a downwardly revised 0.3 per cent m-o-m drop
(from +0.4 per cent m-o-m) in December), while orders for nondefense capital
goods excluding aircraft, a measure of business spending plans, were flat m-o-m (compared to a
0.6 per cent m-o-m decrease in December and instead of increasing 0.1 per cent m-o-m as
reported last month).