Factory orders slump; 8th decline in 9 months - USA TODAY
WASHINGTON — U. S. factory orders tumbled in April, a sign that manufacturers are struggling amid a stronger dollar and cheaper oil. Orders fell 0. 4% in April, marking the eighth decline in nine months, the Commerce Department said Tuesday. The key category that tracks business investment plans — non-military capital goods excluding aircraft — slipped 0. 3%. Orders for electronic products plunged 4%, while demand in the volatile aircraft category tailed off sharply. At the same time, cheaper oil prices have slashed demand from energy firms for pipelines and equipment. Orders for durable goods, which are items expected to last at least three years, declined 1% in April. Demand for non-durable goods, which include food and clothing, increased just 0. 2%. Still, there are signs that manufacturers are adjusting in response to the changing conditions. Energy firms responded quickly to oil prices dipping below $60 a barrel, such that the brunt of the layoffs and canceled orders has largely been processed by the economy. Demand for oil and natural gas field machinery increased slightly in April. In May, new orders and hiring fueled manufacturing growth, according to the Institute for Supply Management, a trade group of purchasing managers. Source: www.usatoday.com
