WASHINGTON, May 28 (Reuters) - Orders for U.S. durable goods fell sharply in April on slumping demand for cars and military aircraft, the government said on Wednesday in a report that reflected continued weakness in the U.S. factory sector.
The Commerce Department said orders for durable goods -- items meant to last three or more years -- slid 2.4 percent in April after a revised gain of 1.4 percent in March. The March gain had previously been reported as a 1.5 percent increase.
Analysts polled by Reuters had been anticipating a smaller 1.0 percent drop-off in orders after March's surprise gain. Commerce said April's drop in new orders was the largest since September 2002, when orders fell by 4.6 percent.
While orders for transportation equipment fell by a hefty 5.4 percent, accounting for much of the overall decline, weakness was seen across many manufacturing sectors. Orders excluding transportation goods fell 1.2 percent, while orders excluding defense-related goods were down by 1.5 percent.