Demand for U.S. durable goods tumbled in January, falling more than double the rate expected as orders for airplanes plunged.

Meanwhile, sales of existing-homes in the United States increased in January to the highest level in seven months, but prices took a tumble.

Orders for durable goods decreased by 7.8% last month to a seasonally adjusted US$203.90 billion, the U.S. Commerce Department said today. Durables rose 2.8% in December, revised from a previously estimated 2.9% increase.

A key barometer of business-equipment spending — orders for nondefense capital goods excluding aircraft — fell by 6%, after increasing 3.6% in December. Shipments for nondefense capital goods excluding aircraft decreased by 2.7%, after dropping by 0.8% in December; the shipments are used in calculating gross domestic product.

The 7.8% decrease in overall durable goods orders surprised Wall Street. Economists had forecast durables coming in just 3.2% lower in the first month of 2007.

Growth of durable goods manufacturers’ inventories slowed in January, rising 0.3% after climbing 0.7% in December.

Transportation orders fell 18.0% in January, after rising 3.1% in December. Orders for commercial planes decreased 60%, while military aircraft orders fell 55%. Motor vehicles and parts decreased by 5.1% last month.

Orders for all durables except transportation goods decreased 3.1%, after rising 2.6% in December. Demand fell 1.5% for primary metals, 9.3% for machinery, and 7.8% for computers and electronics. Sales rose 1.4% for fabricated metals and 7.9% for electrical equipment.

Capital goods orders plunged by 17.2% last month. Non-defense capital goods — items meant to last 10 years or longer — decreased 19.9%. Defense-related capital goods orders rose 10.7%.

Orders for everything except defense goods dropped by 7.8% in January, after going up 4.0% during December. Durable-goods shipments of manufacturers went 0.2% higher last month. Unfilled orders, a sign of future demand, inched up 0.1%.

Meanwhile, U.S. home resales rose to a 6.46 million annual rate, a 3.0% increase from December’s revised 6.27 million annual pace, the National Association of Realtors said today. November’s rate was originally estimated at 6.22 million.

The median home price was US$210,600 in January, compared with US$221,600 in December and US$217,400 in January 2006. NAR chief economist David Lereah said unseasonably warm weather helped boost sales.

The surprisingly large increase carried sales to the highest level since 6.49 million in June. Wall Street expected a 6.25 million sales rate for previously owned homes in January.