Demand for Manufactured Goods Drops Sharply

Washington, DC, March 5, 2008—New orders for manufactured goods fell 2.5 percent in January compared to December, the largest amount in five months, according to the Commerce Department.

Manufacturing is being affected by the economic slowdown, as well as record high oil prices and other increased costs. The slumping housing and credit markets are also slowing demand.

The weakness was mostly reflected in lower demand for expensive goods that are expected to last at least three years, such as cars, machinery and computers.

Demand for items such as food and clothing was up 0.3 percent in January.