The U.S. Commerce Department reported on Tuesday that the value of new factory orders decreased 0.8 percent m-o-m in April, following a revised 1.3 percent gain in March (originally a 1.9 percent m-o-m surge). That was the largest decline in factory orders since October 2018.

Economists had forecast a 0.9 percent m-o-m drop.

According to the report, orders for transportation equipment tumbled 5.9 percent and orders for computers and electronic products declined 0.5 percent, while orders for electrical equipment, appliances and components rose 0.9 percent and orders for machinery edged up 0.3 percent.

Total factory orders excluding transportation, a volatile part of the overall reading, rose 0.3 percent m-o-m in April (compared to a 0.3 percent m-o-m advance in March), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, declined 1.0 percent m-o-m (compared to a 0.3 percent m-o-m gain in March). The report also showed that shipments of core capital goods were unchanged m-o-m in April, following a decrease of 0.6 percent m-o-m in March.

In y-o-y terms, factory orders increased 1.6 percent in April.