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The U.S. durable goods orders posted a surprising decline in orders for transportation equipment.

Data from the U.S. commerce department showed a decline for the month of October, surprising economists. The decline in the data came after September’s durable goods orders data showed a strong increase.

However, the declines were much stronger than expected.

U.S. Durable goods orders October 2017: -1.2% (m/m). Source: Tradingeconomics

Coming in below forecasts, the commerce department data showed that durable goods orders fell 1.2% on the month in October.

This came after September’s increase was further revised to show a 2.2% upward revision.

The decline in durable goods orders was a surprise as economists polled hoped that durable goods orders would rise 0.3% for October.

Excluding the decline in orders for transportation equipment, the headline durable goods orders rose 0.4% during the month. This was a 1.1% increase from September.

Excluding transportation orders, durable goods orders rose 0.5% on the month.

The data from the commerce department showed that the decline came due to lower orders for transportation equipment which fell 4.3% during the month.

This came after orders for transportation equipment rose 4.4% previously.

Orders for non-defence aircraft and parts showed a decline, falling 18.6% during the month. In the previous month, orders for non-defence aircraft and parts surged 33.9%.

There was some increase seen in the orders that excluded transportation equipment.

This came due to a rebound in orders for primary metals which showed an increase of 1.3% during the month.

This offset the decline of 0.5% seen previously. Orders for non defense capital goods that excludes aircrafts showed a decline of 0.5%.

This data underlined the fact that business investment declined in October after rising 2.1% in the previous month.

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