Order cancelations for Boeing aircraft were behind much of the decline in US durable goods demand (Jason Redmond)

Washington (AFP) – New orders for durable manufactured goods collapsed in March as companies were forced to shut down production amid efforts to contain the spread of the coronavirus, the Commerce Department reported Friday.

Orders fell 14.4 percent compared to February to $213.2 billion, led by a 41 percent collapse in transportation equipment, which largely revolves around Boeing’s trouble with order cancelations.

Excluding transportation, durable goods orders fell just 0.2 percent, the report said.

Orders for civilian aircraft — which is a calculated net of cancellations and can swing wildly — plunged over 295 percent in the month.

Boeing saw a spike in canceled plane orders in March due to the travails of the 737 MAX, which has been grounded for more than a year after two fatal crashes, as well as the hit to air travel from COVID-19.

Orders for 150 MAX planes were annulled last month, half of those from the Irish company Avolon.

New orders for motor vehicles and parts dropped 18.4 percent in March, but most other categories, like metals and computers, showed more modest declines, while orders for appliances and communications equipment rose.

The data are key to calculating US gross domestic product.

“Due to recent events surrounding COVID-19, many businesses are operating on a limited capacity or have ceased operations completely,” the Census Bureau said, but added there was sufficient confidence in the data to publish the monthly report as usual.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.