April Factory Orders Are Weaker Than Expected

[CShine]

WASHINGTON (Reuters) - U.S. factory orders posted their biggest decline in a year as demand for a wide array of goods fell in April, the government said on Thursday in a weaker-than-expected report.

Factory orders fell 1.7 percent in April after a 5 percent gain a month earlier, the Commerce Department said. It was the biggest monthly decline since April 2003. Economists on Wall Street had looked for a fall of just 1.2 percent.

The decrease in orders reflected a larger drop in demand for long-lasting, big-ticket items than reported a week ago. The department said orders for durable goods -- items like cars and refrigerators that are expected to last three years or more -- slid 3.2 percent, compared to an initially reported decline of 2.9 percent. It was the biggest slide in durable goods orders since September 2002.

http://www.nytimes.com/reuters/business/business-economy-factory.html

[mbperrin]

1. I've said it before -

I'll say it some more. When they claim that orders or GDP equal a great economy, they leave out sales. When the old orders don't sell, new orders fall.

Hint: when people are spending double on gasoline, electricity and food, there's less money left to spend on other things!