Orders for Manufactured Goods to US tumbled 1.1% last month

Orders to U.S. factories for big-ticket manufactured goods slumped 1.1% in February with demand in a key sector that tracks business investment also dropping.

Orders had been rising for nine consecutive months, including a sizable 3.5% jump in January, according to the Commerce Department.

The size of the drop surprised economists, though it is likely that there was significant disruption from severe winter storms that hit much of the country last month, on top of ongoing supply-chain problems.

The category that covers business investment dropped 0.8% in February following solid gains of 0.6% in January and 1.5% in December.

The volatile transportation sector fell 1.6% with demand for commercial aircraft, a sector plagued by the huge drop in air travel during the pandemic, shooting up 103%. Contributing was beleaguered manufacturer Boeing, which for the first time since December 2019 booked positive net orders.

But orders for autos and auto parts slumped 8.7% with numerous plants shutdown due to a global shortage of semiconductors, a critical component used in cars and trucks.