U.S. durable goods drop 1% in November

Special Report:Global Financial Crisis

WASHINGTON, Dec. 24 (Chinese media) -- Orders for U.S. manufactured durable goods fell by 1 percent in November, smaller than the 3 percent drop expected by analysts, the Commerce Department reported Wednesday.

The November decline in orders for durable goods, big-ticket items expected to last at least three years, followed an 8.4 percent plunge in October, which had been the biggest drop in eight years.

In November, demand for transportation equipment, which accounts for more than one quarter of total durable goods orders, decreased by 7.4 percent, compared with a 12.7 percent plunge in October.

Orders for commercial aircraft and parts, a very volatile category, plummeted 37.7 percent last month after having declined 8.7 percent in October. Demand for autos and parts edged down 0.2 percent, a better showing than the 5.1 percent drop in the previous month.

Excluding volatile transportation demand, orders for durable goods would have gained 1.2 percent in November, the best showing since last June. That represented a big improvement from October's6.8 percent plunge in orders outside transportation.

Demand for nondefense capital goods excluding aircraft, a closely watched guide to business investment plans, rose by 4.7 percent last month, in contrast to the 6.6 percent drop in October.

The November drop in durable goods orders, the fourth consecutive monthly decline, reflected weakness in the nation's manufacturing sector, which was hard hit by the housing slump and the financial crisis.

Manufacturing will not rebound until the overall economy does, many analysts believe.