Demand for U.S. durable goods unexpectedly dropped in February7, while a barometer of capital spending by U.S. businesses tumbled a second straight month.

Meanwhile, new-home sales slid 1.8% in February to the lowest mark in 13 years, while the median price also declined to US$244,100.

Orders for durable goods fell 1.7% last month to a seasonally adjusted US$210.65 billion, the Commerce Department said today. Durables, which are manufactured goods designed to last at least three years, decreased 4.7% in January.

Wall Street expected an increase in durable goods orders during February, with economists forecasting a climb of 0.8%.

Today’ s data showed a barometer of business equipment spending — orders for nondefense capital goods excluding aircraft — decreased in February by 2.6%, after falling 1.8% in January. February shipments for nondefense capital goods excluding aircraft fell by 2.1%, after decreasing 0.4% in January; the shipments are used in calculating gross domestic product, which is the barometer for economic activity in the United States.


Separately, sales of single-family homes decreased by 1.8% last month to a seasonally adjusted annual rate of 590,000, the Commerce Department said. January new-home sales fell 1.6% to an annual rate to 601,000.

Economists had forecast that February sales slipped 2.2% to a rate of 575,000. The actual rate of 590,000 marked the lowest sales pace since 559,000 in February 1995.

Year over year, new-home sales were 29.8% lower than the level in February 2007.

The median price of a new home decreased by 2.7% to US$244,100 in February from US$250,800 in February 2007. The average price tumbled by 7.8% to US$296,400 from US$321,500 a year earlier. In January, the median price was US$225,600 and the average was US$282,500.