Orders for airliners, computers and other long-lasting products unexpectedly declined sharply last month, a sign that economic growth probably slowed in the fourth quarter after its best six-month stretch in a dozen years.
Durable goods orders fell 3.4 percent in December from the previous month, the Commerce Department said Tuesday.
Orders had been down 2.1 percent in November, but economists had forecast they would bounce back and increase 0.7 percent last month.
Instead, new orders fell for the fourth time in five months. The steep drop in durable goods in November and December is a sign the rising value of the dollar is hurting durable goods orders by reducing demand for U.S. goods abroad, said Chris Rupkey, chief financial economist at Union Bank in New York.