Summary Box: Factory orders fall 1.4 percent in May; worst showing in 9 months clouds recovery
By APFriday, July 2, 2010
Summary Box: May factory orders fall 1.4 percent
ORDERS SLOW: Orders to U.S. factories declined by 1.4 percent in May, the Commerce Department reported. It was the biggest drop since March 2009, reversing nine months of gains.
WHITHER RECOVERY? So far, factories have fueled the recovery by revving up and hiring before other sectors. If manufacturing stalls, the economy would lose a crucial buffer against high unemployment and Europe’s fiscal woes.
SILVER LINING: The results suffered from plunging fuel and aircraft orders — two volatile industries that can cloud the true picture. Meanwhile, core spending by companies soared. That could keep factories humming, analysts said.
YOUR VIEW POINT