New Orders To US Factories Fell In August

October 5, 2009

The AP reported, "New orders to U.S. factories fell in August by the largest amount in five months, as American manufacturers struggle to emerge from the recession." The Commerce Department said Friday "that demand for manufactured goods dropped 0.8 percent, much worse than the 0.7 percent gain that economists had expected." The August decline reflected "plunging demand for commercial aircraft." Economists worry that factories "will remain under pressure because of weak consumer spending as American households deal with continued layoffs and rising unemployment." For August, the "0.8 percent drop in new orders followed four consecutive gains, including a 1.4 percent jump in July. A 42.6 percent plunge in demand for commercial aircraft, a category that had soared 98.1 percent in July, led the overall decline in August." Excluding transportation, orders "would have risen 0.4 percent, after falling 0.6 percent in July."