The U.S. Commerce Department reported on Thursday that the value of new factory orders fell 0.5 percent m-o-m in January 2020, following a revised 1.9 percent m-o-m gain in December 2019 (originally a 1.8 percent m-o-m advance).

Economists had forecast a 0.1 percent m-o-m drop.

According to the report, orders for transportation equipment fell 2.1 percent m-o-m in January after an 8.8 percent m-o-m surge in January. Meanwhile, machinery orders increased 2.1 percent m-o-m after declining 1.7 percent m-o-m in December. Orders for electrical equipment, appliances and components decreased 1.1 percent m-o-m in January.

Total factory orders excluding transportation, a volatile part of the overall reading, edged down 0.1 percent m-o-m in January (compared to an unrevised 0.6 percent m-o-m growth in December), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, rose 1.1 percent m-o-m as reported last month. The report also showed that shipments of core capital goods increased 1.0 percent m-o-m in January, rather than climbing 1.1 percent m-o-m as previously reported.