Factory Orders Fall Again in September

Washington, DC, Nov. 4, 2008–U.S. factory orders fell sharply in September for the second straight month, another sign that the manufacturing sector is slowing at a rapid pace.

Factory orders fell 2.5% in September after falling a revised 4.3% in August, the Commerce Department estimated Tuesday.
 
Economists had been looking for a drop of about 0.2% in factory orders.
 
Orders for durable goods such as airplanes, computers and washing machines increased a revised 0.9% in September, up slightly from 0.8% estimated a week ago.

Durables were pushed higher by a 29.7% gain in orders for new civilian aircraft. Overall transportation orders rose 6.5% in September.

Excluding transportation, factory orders dropped a record 3.7% in September.

Meanwhile, shipments of factory goods fell 2.8% in September, the second straight monthly drop. Inventories fell 0.7% in September, which was the first drop in five months.