Orders to U.S. factories for big-ticket manufactured goods fell broadly in June as the fragile recovery continued to slow.
Demand for durable goods dropped 1 percent last month to a seasonally adjusted $190.5 billion, the Commerce Department said Wednesday. It was the second straight monthly decline and the largest drop since August 2009.
Orders for commercial aircraft were down by more than a quarter in June. Without the volatile transportation sector, orders fell by 0.6 percent.
Manufacturing has helped drive growth during the early stages of the recovery. A slowdown in orders could be a sign that the recovery is losing strength.
June's orders were 16.5 percent higher than the seasonally adjusted $176 billion in orders from a year ago, when the economic recovery had yet to take hold. But they were below the pre-recession peak of $229.5 billion in July 2007.
Durable goods are expected to last three or more years.
Last month's decline hit most major industries, including machinery, primary metals and electronics. Motor vehicles, electrical equipment and appliances were among the few bright spots.
Consumers and businesses are reining in spending as the economy sputters. High unemployment and Europe's economic instability weighed on them in June.
The disappointing results followed a report Tuesday that consumer confidence continued to weaken for July.
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