Durable goods orders in the US down 4.4% in October and business investment stable

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Numbers: Orders for US-made durable goods fell in October, mainly due to lower demand for aircraft of all types. In particular, business investment was weak for the third month in a row.

Orders fell 4.4%, marking the biggest drop in 15 months, the government said on Wednesday. Economists surveyed by MarketWatch had predicted a 3.4% decline in orders for durable goods or products manufactured over at least three years.

Commercial jet aircraft reservations decreased by 21.4% and decreased by 59% for fighter jets and other military aircraft.

Excluding aircraft and cars, orders edged up 0.1%. Transportation often exaggerates the highs and lows of orders because of the high demand from one month to the next.

What happened: The decline in aircraft orders was not surprising. Boeing tends to receive fewer orders late in the year after a summer bonanza. In addition, defense aircraft orders recorded the largest monthly increase in September for 17 years. So, a turnaround was expected.

In addition to aircraft, orders for machinery and primary metals also declined.

Orders have increased for computers, network equipment and electrical equipment.

The most important report to remember from the October report was another soft reading on business investment. The so-called "basic" orders fell slightly last month, after slight declines in September and August.

Although the closely watched measure increased 3.2% in the last 12 months, it rose 8% earlier in the year.

Read also: Huge US trade deficit with China could prevent Trump and Xi from negotiating

Big picture: Business investment declined in the fall, adding new worries about the economy. The increase in business spending has boosted the economy over the last 18 months.

Some economists argue that the slowdown will probably be temporary. According to them, companies must invest more in equipment and automation to counter the rise in wages and the growing shortage of skilled workers.

Still others suggest that businesses may be more hesitant because of the slowdown in the global economy and rising trade tensions with China, issues that seem difficult to resolve.

Lily: Global growth will slow down here

Market reaction: The Dow Jones Industrial Average

DJIA, -2.21%

and the S & P 500

SPX, -1.82%

should open higher Wednesday, after a pair of brutal sales this week having erased all 2018 stock market gains. A poor report on durable goods and an increase in the number of UI claims could however limit these gains.

The 10-year Treasury yield

TMUBMUSD10Y, + 0.00%

broke its seven-year record to just over 3%, reflecting recent concerns about the strength of the US economy.