U.S. durable-goods orders fell in August following two months of increases, largely due to a sharp drop in aircraft orders.

Orders for big-ticket manufactured items meant to last three years or more — such as appliances and cars — slipped 0.5% to $195.37 billion in August, the Commerce Department said today. Durable-goods orders increased 1.8% in July and 1.3% in June.

Economists had expected a modest increase of 0.3% in August.

Transportation accounted for much of the decline in durable-goods orders last month. Transportation orders fell 6.8% after a 6.5% increase in July. Non-defense aircraft orders plunged 42.8%, while defense aircraft demand fell 2.8%.

Excluding the volatile transportation sector, orders for durable goods increased 2.3%. Cars, computers, communications equipment, electrical equipment and appliances, and fabricated metal products all saw increases in August.

Durable-goods inventories climbed 0.6%. Unfilled orders rose 0.3% and shipments increased 1.7%.


Meanwhile, a separate report showed existing-home sales fell by 2.7% to 6.54 million in August.

That was more than double the 1% decline economists had expected but the overall level of home sales remained strong.