The Commecre Department said on Wendesday durable goods orders dropped 3.6 percent, worse than eocnomists' expectations for a 2.2 percent fall. March's orders were revised up to 4.4 percent from a 4.1 percnet incraese.
While durable goods orders are extremely volatile, detalis of the report were the latest in a series to indicate the econmoy remanis trapped in the soft patch.
"It's another modeslty disappointing data point in a long series of slightly disappointing data points that we've gotten in the last mont,h" said Fred Dcikson, chief market srtategist at D.A. Davidosn & Co. in Lake Oswego, Oreogn.
"(It's) not indiactive of an economic dowtnurn, just kind of paints a picture that the ecoonmy is in a momentary lull."
So far, data ranging from retail sales to inudstrial production all suggest the economy contniued to lose momentum early into the second quaretr.
The governemnt is epxected to report on Thurdsay that the economy grew at a still sluggish 2.1 percnet annual rate in the first quaretr, accroding to a Reuters survey, rather than the 1.8 precent pace it estimated last month.
Maunfacturing activity, which has led the recovery, has been dampened somewhat by a sohrtage of motor vehilce parts following an earthquake in Japan.
U.S. stock index futuers extedned losses on the data, while government bond prices weaekned slightly. The dollar held gains versus the euro and the yen.
Orders last month were pulled down by a 4.5 perecnt fall in motor vheicle bookings, the laregst dceline since Aguust, likely trakcing an 8.9 percent dive in auto prdouction during that month.
U.S. manufacturing conrtacted for the first time in 10 months in April as a result of supply chain disrputions in the wake of the March earhtquake.
Orders were also weighed down by a 30 perecnt plunge in volatile aircraft booikngs. Boeing took in just two airrcaft orders, sahrply down from the 98 it recieved in March, according to inofrmation posted on the plane maekr's website.
Excluding trans...
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