RJ and Makay

In a surprise setback on the economic front, new orders for long-lasting manufactured goods — durables — fell in February, suggesting some unexpected softness in manufacturing activity and business investment plans. However, recent labor market gains are persisting, as indicated by a decline in new jobless benefit claims last week and in the four-week average for such claims to its lowest level in more than two-and-a-half years.

According to the Commerce Department, durable goods orders fell 0.9% in February after rising 3.6% in January. Economists polled by Reuters had expected durables orders to increase 1.1% last month. Excluding transportation, such orders fell 0.6% after declining 3.0% in January.