New orders for manufactured durable goods fell by 0.5% in April, the Commerce Department reported, exceeding economists’ forecasts of a 0.3% decline. This follows a revised 0.7% increase in March.

The weakness was concentrated in the transportation sector, with orders plummeting 4.7%. Excluding transportation, durable goods orders actually rose by 0.5%.

Economists are carefully watching durable goods orders as a leading indicator of business investment and overall economic health. The latest figures suggest that businesses are becoming more cautious in their capital spending plans.

Here are some key details from the report:

• Orders for motor vehicles and parts decreased.
• Orders for nondefense capital goods, excluding aircraft, a proxy for business investment, were down slightly.
• Shipments of durable goods also declined, indicating slower production.

The report adds to concerns about the pace of economic growth in the United States, particularly in light of rising energy prices and a struggling housing market. The Federal Reserve is expected to closely monitor these trends as it considers future monetary policy decisions.