U.S. durable goods orders fell in October

New orders for durable goods orders fell well below economists' expectations in October, the U.S. Department of Commerce said Wednesday.

New orders for manufactured durable goods -- products expected last more than three years -- fell 6.2 percent to $193 billion, far below a the expected fall of 2.6 percent.

The drop was the largest one-month fall since October 2006 and follows a September decline of 0.2 percent, the government said.

New orders in transportation equipment fell 11.1 percent in the month, dropping $6.1 billion to $49 billion, the largest contributor to the decline.

Unfilled orders, showing future business, fell for the first time in 26 months, dropping 0.2 percent to $823.6 billion, the report said.

Shipments of durable goods fell for the third consecutive month, down 2.4 percent to $202.9 billion, following a 2.2 percent decline a month ago. Inventories, climbing 15 of the past 16 months, rose 0.4 percent to $341 billion, the highest level since 1992.

Defense orders and orders unrelated to defense fell in the month, falling 31 percent to $8.3 billion and 3.6 percent to $65.6 billion, respectively, the report said.

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