Durable goods orders drop

June’s new U.S. orders for durable goods declined 9.3% from the prior month to $311.8 billion, the Commerce Department reported. The drop in orders for goods meant to last more than three years, such as home appliances, computers and other business equipment, came after a 16.5% increase in May.

Data showed monthly orders have gone up and down for the past year, with fluctuations especially pronounced since new federal import trade tariffs were enacted in April. Forecasting firm Oxford Economics said factors shaping June numbers included a steep drop from May in non-defense aircraft orders, especially for Boeing, along with slowed demand for defense-related items.

“The sharp drop in durable goods orders in June was partly payback from a bumper month for aircraft orders but also reflected a sharp drop-off in core capital goods orders,” Michael Pearce, chief U.S. economist at Oxford Economics, said in a statement. He said business equipment investment likely stagnated in the second quarter, “and we expect further weakness in the second half.”