» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 126 | NO. 237 | Tuesday, December 06, 2011

Factory Orders Fall for 2nd Straight Month

DEREK KRAVITZ | AP Economics Writer

Print | Front Page | Email this story | Comments ()

WASHINGTON (AP) – Companies decreased their overall orders to U.S. factories in October for the second straight month, evidence that the economy remains weak despite other signs of improvement.

The Commerce Department said Monday, Dec. 5, that total factory orders fell 0.4 percent. September’s modest 0.3 percent increase was also revised to show a 0.1 percent drop.

Demand for so-called core capital goods, a good proxy for business investment plans, fell 0.8 percent. Still, that’s after two months of solid increases.

Factory orders can vary greatly from month to month. A big reason for October’s decline was a large drop in orders for commercial aircraft, a volatile sector that fell nearly 17 percent.

Analysts say October’s report offered some positive news: manufacturers increased their stockpiles 0.9 percent in October after more modest increases in previous months.

The report covers both durable goods, items expected to last at least three years, and nondurable goods, products such as paper, chemicals and clothing.

Orders for durable goods fell 0.5 percent, reflecting the weakness in commercial aircraft. Orders for nondurable goods were down 0.3 percent. And defense industries reported a steep 21.1 percent drop in new orders for goods such as missiles, aircraft and small arms.

Manufacturing has been showing signs of rebounding after slowing earlier this year.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 0 269 16,682
MORTGAGES 0 313 21,745
FORECLOSURE NOTICES 0 56 4,322
BUILDING PERMITS 0 209 39,587
BANKRUPTCIES 0 287 15,829
BUSINESS LICENSES 0 67 5,558
UTILITY CONNECTIONS 0 413 23,986
MARRIAGE LICENSES 0 94 5,129

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.