US durable goods fall more than expected in December

US durable goods orders fell more than expected in December, reflecting a decline in transport, the Commerce Department revealed on Thursday.

Orders dropped 5.1% last month, more than the 0.7% fall that was forecast and compared to the 0.5% decrease in November. The slump was driven by a 12.4% plunge in transportation orders.

Excluding transport, orders dipped 1.2% in December, missing estimates for a 0.1% fall and following a 0.5% slide in November.

The weak data supports the Federal Reserve’s case to hold back on raising interest rates on Wednesday. The Fed said the jobs market was strong but the US has seen mixed data on the economy including poor retail sales and further contraction in manufacturing activity.