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U.S. Factory Orders Fall For Second Month
By Martin Crutsinger, AP Economics Writer
Manufacturing.Net - March 26, 2008

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WASHINGTON (AP) -- Orders to factories for big-ticket manufactured goods fell for a second straight month in February, a worse-than-expected performance that provided more evidence of the economic troubles gripping the country.
 
The Commerce Department reported Wednesday that demand for durable goods dropped 1.7 percent last month, disappointing analysts who had been expecting a small rebound after a 4.7 percent decline in orders in January.
 
The declines showed up in a number of areas. Demand for manufacturing equipment plunged by 13.3 percent, the largest amount on record, while the category that is seen as a good proxy for business investment fell by 2.6 percent, the biggest decline in four months.
 
The problems in manufacturing are a reflection of weakness in the overall economy as the country struggles with a prolonged slump in housing, a severe credit crunch, soaring energy prices and higher unemployment.
 
Economic growth slowed to a barely discernible 0.6 percent in the final three months of last year, and many economists believe the gross domestic product will turn negative in the current quarter, signaling the start of a recession.
 
The 1.7 percent drop in orders for durable goods, items expected to last at least three years, was worse than the 1 percent increase that many economists had expected.
 
The weakness came even though orders for transportation equipment rebounded with a 0.6 percent rise in February after a big 12.6 percent plunge in January. The swing in both months reflected changes in demand for commercial aircraft, which rose 5.4 percent in February following a 30.2 percent plunge in January. Orders for motor vehicles fell by 2.7 percent in February as U.S. automakers continued to face weak demand, reflecting the weak economy and soaring energy prices.
 
Excluding transportation, orders fell by 2.6 percent in February, representing the fourth decline in the past five months.
 
Economists believe that if the country does slip into a recession, the downturn may not be as severe in manufacturing, which is being helped by continued strong growth overseas, which is bolstering U.S. exports.

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high energy prices killing our economy  3/26/2008 6:38:00 PM
The president needs to auction off part of our record oil reserves to cool oil prices! President Bush has refused in past to do this , but Pres. Clinton did it and it worked to lower energy prices which in turn helped keep inflation low and economy growing. President Bush has topped off our oil researves-full! Even while prices were rising.... President Bush! Open our oil researves to kill speculation and lower energy prices!
economist  3/26/2008 7:41:00 PM
economist expected MILAGROS
Production in America  3/27/2008 7:36:00 AM
whoever is elected into office needs to ensure that any company that sells product in the us, has to produce some percentage of that product in the US. To many companies have moved production overseas- just to ship it back to US and make bigger profits. They are slowly learning, that the people in America without jobs, can't afford their products anymore.


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