By Harriet Torry
Orders for U.S. manufactured goods decreased sharply in November from the prior month, reflecting cooler demand for products amid rising borrowing costs.
New orders for manufactured goods fell a seasonally adjusted 1.8% in November, the Commerce Department said Friday, snapping a three-month growth streak.
Orders for transportation equipment drove the decline, falling 6.3% from the prior month. Excluding transportation, an often volatile segment, factory orders declined 0.8% from October. New orders for manufactured durable goods--those meant to last at least three years--fell 2.1% on the month.
Economists surveyed by The Wall Street Journal estimated that factory orders declined 1.1% in November.
The U.S. factory sector has been under pressure lately due to rising interest rates and consumers' shift in spending patterns toward services.
Business surveys show U.S. factory activity declined in December, the Institute for Supply Management and S&P Global both said this week. New orders contracted, the surveys found, a sign of weakening demand ahead.
Write to Harriet Torry at harriet.torry@wsj.com
(END) Dow Jones Newswires
01-06-23 1057ET
