Orders for U.S. durable goods decreased by 0.4% during October to a seasonally adjusted US$214.45 billion, the U.S. Commerce Department said today.

It was the third straight months that orders declined.

Durables, which are goods designed to last at least three years, decreased 1.4% in September, revised from a previously estimated 1.7% decline. August orders plunged 5.3%.

Orders during October for nondefense capital goods excluding aircraft fell by 2.3% — the largest decline since 2.4% in February 2007. These orders are considered a measure for business capital spending in the U.S. and watched closely.

September orders for nondefense capital goods excluding aircraft rose 1.2%. October shipments for nondefense capital goods excluding aircraft decreased 1.2%, after rising 1.7% in September; the shipments are used in calculating gross domestic product, which is the barometer for economic growth in the U.S.

Wall Street expected a smaller decline in overall durable goods orders. Economists had durables just 0.1% lower in October.

Transportation orders in October increased 0.2%, after plunging by 7% in September. Demand for military planes dropped 10.6%, after falling 28.9% in September. Commercial aircraft orders decreased 5.2%. Motor vehicles and parts declined by 1.4% last month.

Orders for all durables except transportation goods fell 0.7% in October. Orders decreased by 8.4% for computers and electronics and 1.7% for machinery. Orders rose 4.1% for electrical equipment, 3.0% for primary metals, and 2.3% for fabricated metals. Demand ex-transportation had gone 1.1% higher in September.

October capital goods orders decreased by 1.3%. Nondefense capital goods — items meant to last 10 years or longer — fell by 3.1%.

Defense-related capital goods orders increased by 16.1%. Orders for everything except defense goods decreased by 0.9% in October, after going 0.3% higher during September.

Durable-goods shipments of manufacturers went 0.6% higher last month. Unfilled orders, a sign of future demand, climbed 1%. Inventories rose 0.2%.