New Factory Orders Down in August

Washington, DC, Oct. 2, 2009--New orders to U.S. factories fell in August by the largest amount in five months, according to the Commerce Department.

Demand for manufactured goods dropped 0.8 percent, much worse than the 0.7 percent gain that economists had expected. The August decline reflected plunging demand for commercial aircraft, a category that surged in July.

Economists worry that factories will remain under pressure because of weak consumer spending as American households deal with continued layoffs and rising unemployment.