Decline in Factory Orders Adds to US Economic Pessimism

06 November 2002

The avalanche of disappointing US economic data continues, with new figures showing a decline in September orders for factory goods, once again pointing to continued weakness for the near future.

According to the Commerce Department, factory orders slipped 2.3% in September to $318.1 billion (€317.3bn; £203.5bn), on the back of a 0.4% fall in August.

The decline reflected a 4.9% tumble in orders for durable goods (those designed to last over three years). In contrast, non-durable goods orders increased 0.9%.

Business investment also suffered. Orders for goods excluding defence equipment and aircraft – considered a guide to companies’ expenditure – slipped 4.3%.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff