U.S. durable goods post largest drop in nearly a year

Another "Summer of Recovery" fails to materialize.

(Reuters) - Orders for long-lasting U.S. manufactured goods recorded their biggest drop in nearly a year in July and a gauge of planned business spending on capital goods tumbled, casting a shadow over the economy early in the third quarter.

The Commerce Department said on Monday durable goods orders dropped 7.3 percent as demand for goods ranging from aircraft to computers and defense equipment fell. That was the biggest decline since last August and snapped three consecutive months of gains

Orders for these goods, which range from toasters to aircraft, had increased 3.9 percent in June.