WASHINGTON, D.C. The demand for manufactured goods in the US took a nose-dive in May, led by a massive drop in commercial aircraft orders.
The Commerce Department reported new durable goods orders dropped by 2.8%, which was the largest amount in the last four months; and larger than the 1% decline anticipated by economists.
While commercial aircraft orders dropped by 22.7%, orders were also down for a number of goods; including primary metals and electronic appliances.
However, the decline in overall orders is not expected to be a continuing trend by analysts, who believe the manufacturing sector is showing signs of strength following a period of weakness to start the year.
The economy slowed to an annual growth rate of just 0.6% in the first three months of 2007, but economists believe growth has rebounded in the second quarter to a more robust 3.5% rate.
Orders for motor vehicles actually rose by 2.3% in May, following a 2.8% drop the previous month.
— with files from the Associated Press
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