Orders for long-lasting US factory goods falls sharply as businesses cut back on spending

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FILE - In this Monday, Sept. 10, 2012 file photo, dryers are seen from the inside of another clothes\' dryer, foreground, at a Lowe\'s store, in Framingham, Mass. The Commerce Department reports on business orders for durable goods in July, on Monday, Aug. 26, 2013 (AP Photo/Steven Senne, File)

WASHINGTON – Orders for long-lasting U.S. factory goods fell sharply last month as demand for commercial aircraft plummeted and businesses spent less on computers and electrical equipment.

The Commerce Department says orders for durable goods plunged 7.3 per cent in July, the steepest drop in nearly a year. Excluding the volatile transportation category, orders fell just 0.6 per cent. Both declines came after three straight increases.

The figures suggest manufacturing growth remains sluggish after a weak start this year.

Economists focus on orders for so-called core capital goods, which exclude volatile aircraft and defence orders. Spending in that category fell 3.3 per cent after four straight gains.

One bright spot was unfilled orders rose to their highest level since records began in 1992.

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