February Durable Goods Orders Fall More Than Expected Amid Aircraft Weakness

01:09 PM EDT, 04/07/2026 (MT Newswires) -- Demand for US durable goods decreased more than estimated in February amid weakness in the aircraft component, government data showed Tuesday.

Orders for tangible items with an average life of at least three years fell 1.4% sequentially to $315.50 billion in February, following a 0.5% drop the month prior, the Census Bureau said. The consensus was for a 1.2% decline for February in a survey compiled by Bloomberg.

Demand for transportation equipment fell 5.4% in February, following a 1.9% decrease in January. Civilian aircraft orders slumped roughly 29%, while the defense component logged a 3.8% drop. Motor vehicles and parts saw a 3.1% gain.

Excluding transportation, durable goods orders rose 0.8% in February, higher than Wall Street's 0.5% growth view.

"February's decline in durable goods orders reflected aircraft-driven swings rather than overall weakness," BMO Capital Markets Senior Economist Priscilla Thiagamoorthy said in a note. "Stripping out transportation suggests business investment will continue to support overall economic growth early this year."

Last month, planemaker Boeing (BA) reported that it received orders for 21 aircraft in February, up from 13 a year earlier, but down from 107 in January.

Demand for primary metals, fabricated metal products, and machinery rose sequentially in February, while new orders for computers and electronic products were little changed, government data showed Tuesday.

The ongoing US-Israel war with Iran, which started at the end of February, has curtailed shipments through the crucial Strait of Hormuz, sending energy prices soaring and stoking broad-based inflation concerns.

Business equipment spending in the US was heading into the war with "plenty of momentum," Oxford Economics Lead Economist Bernard Yaros said in a remarks e-mailed to MT Newswires Tuesday.

"The energy shock, along with the uncertainty created by the Iran war, is an emerging headwind," Yaros wrote. "However, the (artificial intelligence) buildout and the business tax cuts under the One Big Beautiful Bill Act will still allow equipment spending to grow this year, albeit a notch slower than earlier thought."

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