Demand for manufactured products posted its largest decline in three years in March, according to a government report released the day after several private reports found major gains in U.S. factory activity.
The Commerce Department said that new orders slumped 1.5 percent, falling $7.1 billion to $460.5 billion, after growing 1.1 percent in February. That’s the steepest drop since March 2009.
Demand for transportation equipment suffered the most dramatic plunge, diving 12.6 percent. Strong auto sales earlier in the year cooled off last month as automakers such as Hyundai, Kia and Nissan watched their previously double-digit gains shrink.
Without transportation, new orders overall were flat. Durable goods saw demand drop 0.8 percent.
New orders for some other products fell precipitously. With airlines struggling, demand for nondefense aircraft and parts slid 47.6 percent, even as manufacturers such as Boeing reported huge spikes in profit.
A transition away from natural gas extraction by major companies such as Halliburton caused a 47.3 percent collapse in orders for mining and oil and gas field machinery.
