Orders to U.S. factories for big-ticket manufactured goods fell by the largest amount in six months, led by a large decrease in orders for defense aircraft and parts.
FILE - In this Nov. 28, 2019, file photo people shop at a Best Buy store during a Black Friday sale in Overland Park, Kan. On Monday, Dec. 23, the Commerce Department releases its November report on durable goods.
Orders for durable goods fell 2% last month, the biggest decline since May, the Commerce Department said Monday. Orders have fallen in two of the past three months. October’s number was revised down to 0.2% from a 0.6% gain., new orders were flat. Orders for motor vehicles and parts did rebound, up 1.9%, but it wasn’t enough to offset the large decrease in defense aircraft orders.Orders for defense aircraft and parts fell 72.7% and are down 14% the past year.
American manufacturing has been hurt by a prolonged trade war with China and a slowing global economy. So far this year, orders for durable goods, items expected to last at least three years, are down 1.3%. The two countries announced a “Phase 1" agreement earlier this month, under which the U.S. will reduce tariffs and China will buy more U.S. farm products. But there are still many issues to be resolved as negotiations continue.
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