The U.S. Commerce Department reported on Friday that the value of new factory orders fell 0.6 percent m-o-m in April, following a revised 1.4 percent m-o-m gain in March (originally a 1.1 percent m-o-m advance). That marked the first drop in factory orders since April 2020.

Economists had forecast a 0.2 percent m-o-m decrease.

According to the report, orders for transport equipment (-6.6 percent m-o-m) demonstrated the biggest decline in April.

Meanwhile, total factory orders excluding transportation, a volatile part of the overall reading, increased 0.5 percent m-o-m in April (compared to an upwardly 2.3 percent m-o-m surge in March), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, climbed 2.2 percent m-o-m instead of advancing 2.3 percent m-o-m as reported last month. The report also showed that shipments of core capital goods rose 0.9 percent m-o-m in April, unrevised from last month’s estimate.

Overall, durable goods orders fell 1.3 percent m-o-m in April, while orders for nondurable goods edged up 0.1 percent m-o-m.