The U.S. Commerce Department reported on Monday that the durable goods orders fell 2.0 percent m-o-m in November, following a revised 0.2 percent m-o-m increase in October (originally a 0.6 percent m-o-m advance). That was the largest monthly drop since May.

Economists had forecast a 1.4 percent m-o-m increase.

According to the report, orders for durable goods excluding transportation were flat m-o-m, following a revised 0.3 percent m-o-m increase in October (originally a 0.6 percent m-o-m gain) and missing market expectations of 0.2 percent m-o-m rise.

Orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, edged up 0.1 percent m-o-m in November after an unrevised 1.2 percent surge m-o-m in October. Economists had called for a 0.2 percent gain in core capital goods orders in November.

Shipments of these core capital goods decreased 0.3 percent m-o-m in November after a 0.7 percent m-o-m rise in the prior month (revised from a previously reported +0.8 percent m-o-m).