Factory Orders Fell in February

WASHINGTON, DC, March 6, 2015—Orders to U.S. factories fell again in January but a key investment category showed a gain, reports the Associated Press.

Orders to factories edged down 0.2% in January, following declines of 3.5% in December and 1.7% in November, the Commerce Department said.

Orders in a category viewed as a proxy for business investment showed an increase of 0.5% in January following declines of 0.5% in both December and November, which the Associated Press reports is an encouraging sign.

Orders for durable goods, items expected to last at least three years, showed an increase of 2.8% for January, unchanged from the government's preliminary estimate last week.

Orders for nondurable goods, items such as chemicals, paper and food, fell 3.1% after a drop of 3.3% in December. The nondurable category is being dragged down by steep declines in the price of petroleum products.

U.S. manufacturers have been held back in recent months by weak growth in China, Europe and Japan, which also depressed demand for American exports. A stronger dollar is also hurting American manufacturers because it means U.S. goods are more expensive in overseas markets while foreign products are cheaper in the United States, says the Associated Press.