Asian Crisis Blamed For Decline In Orders

Last year was good for American manufacturers, but a December plunge in orders for aircraft may be an ominous sign of trouble from the Asian financial crisis.

“These numbers are for the first time starting to show the direct effects of the Asian turmoil,” said economist David Jones of Aubrey G. Lanston & Co. in New York. “As we move into 1998, we are likely to see more effects from this crisis. … This may be a sign of things to come.”

Orders for durable goods fell 6.1 percent overall to a seasonally adjusted $183.6 billion in December, the Commerce Department said Wednesday, the worst decline in six years. A 74 percent plunge in aircraft orders and a decline in demand for metals accounted for the decrease.

“Orders for new airplanes are losing altitude primarily because of the recession in Asia,” said Jerry Jasinowski of the National Association of Manufacturers.

For the year, though, orders rose 7.1 percent for durable goods - big ticket items from cars to computers expected to last three or more years.

That’s an improvement over a 5.3 percent gain in 1996 but didn’t quite match the 8 percent advance of 1995.