New orders for U.S. durable goods rose far less than expected in July and, excluding transportation equipment, posted their biggest decline in 18 months, according to a government report Wednesday that suggested a slowdown in manufacturing. The Commerce Department said orders for durable goods-expensive manufactured items expected to last at least three years-rose 0.3 percent last month after a 0.1 percent decline in June. However, excluding transportation orders-like a 76 percent jump in demand for commercial aircraft-orders fell 3.8 percent, the biggest drop since January 2009. Business orders for capital goods-seen as a gauge of future business spending-fell by the most since January 2009, when the economy was mired in the deepest recession in decades. Factory orders are a key measure of the economic recovery. Manufacturers have helped to lead the rebound, filling orders for businesses that were building up stocks after reducing them during the recession. But many companies are finished restocking, cooling demand for manufactured goods. Demand for durable goods has mostly increased in recent months. Orders are 15.6 percent higher than a year ago. Excluding the volatile transportation sector, demand has increased in all but two months so far this year.
