US Factory Orders Plunge, Hinting at Economic Slowdown

New data shows a sharp and unexpected drop in orders for long-lasting US factory goods. This signals potential trouble for the American economy. Orders for durable goods fell 2.2% in October. This decline was worse than economists predicted. Durable goods are expensive items meant to last three years or more, like machinery, computers, and appliances. A major driver of the decrease was the transportation sector. Orders for vehicles and aircraft plummeted 6.5% last month, falling to $103.9 billion. This report is a key measure of business investment. The broad-based weakness suggests companies may be growing cautious. Economists watch this data closely for early signs of changing economic momentum.