Factory orders drop 4% in August, most in 2 years

[City Lights]

Source: Marketwatch

Factory orders drop 4% in August, most in 2 years
Demand drops, pushing inventories at factories higher
By Rex Nutting, MarketWatch
Last update: 10:31 a.m. EDT Oct. 2, 2008

WASHINGTON (MarketWatch) - Demand for U.S. factory goods dropped at the fastest rate in two years in August on much lower orders for metals, machinery and vehicles, the Commerce Department reported Thursday.

Factory orders fell 4%, worse than the 3% drop expected by economists surveyed by MarketWatch. Orders had risen 0.7% in July, revised down from the 1.3% estimate given a month ago.

The weaker-than-expected data add to the evidence that the U.S. economy is mired in a recession, and could prompt more calls for the Federal Reserve to cut interest rates again to stimulate growth.

Orders for durable goods fell 4.8% in August, revised lower from the 4.5% estimate provided a week ago. Shipments and orders for nondurable goods fell 3.3%, largely because of lower prices for crude oil and gasoline.

Excluding the 9.1% drop in transportation orders, factory orders fell 3.3%, the biggest drop since September 2001.

Read more: http://www.marketwatch.com/news/story/story.aspx?guid={1173861B-AD58-4D7A-BA24-6B3B5279A431}&siteid=YAHOOB

[Javaman]

1. but but but consumer confidence is up!!! nt

[Supersedeas]

2. nothing to see here -- feed them smiling Bizbos paid to tell us that everything is brighter